Enterprise risk management (ERM) is a systematic approach that strategically assesses risk management from a holistic standpoint, including the whole company or enterprise. The aforementioned approach is a top-down strategic methodology designed to detect, evaluate, and proactively address possible risks, threats, hazards, and other sources of damage that have the potential to impede an organization's operations and goals, or result in negative outcomes. ERM is a prominent framework that assists businesses in the identification, evaluation, and management of hazards at the enterprise level. Scholars identified many elements that serve as motivators for enterprises to participate in the process of ERM. These reasons include the likelihood of encountering financial hardship and the subsequent expenses, subpar profits performance, potential development prospects, and the autonomy of the board. The implementation of an effective risk management plan might potentially serve as a competitive advantage for organizations, facilitating their growth. This elucidates the extensive corpus of research devoted to ERM. This paper examines the fundamental connections between Enterprise Architecture and Risk Management and presents a proposed architectural framework for effectively incorporating risk considerations within the broader organizational context. This article presents a proposed strategy for attaining a comprehensive and shared perspective on hazards throughout an organization.
M. Zieba, S. Durst, and M. Gonsiorowska, “A New Critical Risk on the Block: Cyber Risks as an Example of Technical Knowledge Risks in Organizations,” European Conference on Knowledge Management, vol. 23, no. 2, pp. 1269–1276, Aug. 2022, doi: 10.34190/eckm.23.2.654.
Q. Xu and K. Xu, “Mine safety assessment using gray relational analysis and bow tie model,” PLOS ONE, vol. 13, no. 3, p. e0193576, Mar. 2018, doi: 10.1371/journal.pone.0193576.
N. A. Manab and N. A. A. Aziz, “Integrating knowledge management in sustainability risk management practices for company survival,” Management Science Letters, pp. 585–594, 2019, doi: 10.5267/j.msl.2019.1.004.
C. Murphy and P. Gardoni, “The Role of Society in Engineering Risk Analysis: A Capabilities-Based Approach,” Risk Analysis, vol. 26, no. 4, pp. 1073–1083, Aug. 2006, doi: 10.1111/j.1539-6924.2006.00801.x.
R. C. Rund, “International Organization for Standardization (ISO),” Journal of AOAC INTERNATIONAL, vol. 75, no. 1, pp. 196–199, Jan. 1992, doi: 10.1093/jaoac/75.1.196.
S. Kim and J. Yoo, “How Does LG Group Embed Enterprise Risk Management (ERM) System In Its Conglomerate Governance To Control Its Affiliated Firms’ Risk Events?,” Journal of Applied Business Research (JABR), vol. 33, no. 3, pp. 637–652, May 2017, doi: 10.19030/jabr.v33i3.9952.
D. J. Jurdi and S. M. AlGhnaimat, “The Effects of ERM Adoption on European Insurance Firms Performance and Risks,” Journal of Risk and Financial Management, vol. 14, no. 11, p. 554, Nov. 2021, doi: 10.3390/jrfm14110554.
J. Celona, J. Driver, and E. Hall, “Value-driven ERM: Making ERM an engine for simultaneous value creation and value protection,” Journal of Healthcare Risk Management, vol. 30, no. 4, pp. 15–33, 2011, doi: 10.1002/jhrm.20065.
R. Desir, J. Nam, and R. Pfeiffer, “Does Managerial Ability Improve the Predictability and Relevance of Earnings?,” SSRN Electronic Journal, 2022, Published, doi: 10.2139/ssrn.4201596.
R. MacDonald and M. J. Moore, “The spot–forward relationship revisited: an ERM perspective,” Journal of International Financial Markets, Institutions and Money, vol. 11, no. 1, pp. 29–52, Mar. 2001, doi: 10.1016/s1042-4431(00)00034-2.
A. Tola, “The Implementation of ERM in Non-Life Insurance Companies in Albania,” European Journal of Business and Management Research, vol. 5, no. 6, Nov. 2020, doi: 10.24018/ejbmr.2020.5.6.570.
D. Currie and P. Williamson, “Will ERM entry make British companies more competitive?,” Business Strategy Review, vol. 1, no. 3, pp. 1–16, Sep. 1990, doi: 10.1111/j.1467-8616.1990.tb00013.x.
R. Wijaya, “Analisis Perkembangan Return On Assets (ROA) dan Return On Equity (ROE) untuk Mengukur Kinerja Keuangan,” Jurnal Ilmu Manajemen, vol. 9, no. 1, p. 40, Dec. 2019, doi: 10.32502/jimn.v9i1.2115.
Edi, Y. Z. Basri, and W. Arafah, “Ceo Characteristics, Firm Reputation And Firm Performance After Merger And Acquisition,” Business: Theory and Practice, vol. 21, no. 2, pp. 850–858, Dec. 2020, doi: 10.3846/btp.2020.12782.
N. A. Bhat and S. U. Farooq, “An empirical evaluation of defect prediction approaches in within-project and cross-project context,” Software Quality Journal, vol. 31, no. 3, pp. 917–946, Mar. 2023, doi: 10.1007/s11219-023-09615-7.
E. R. A. Suparto and L. Lukmandono, “Penilaian Maturity Level ERM (Enterprise Risk Management) Berbasis ISO 31000 : 2018,” Prosiding SENIATI, vol. 6, no. 3, pp. 478–482, Jul. 2022, doi: 10.36040/seniati.v6i3.5079.
B. Masama, J. P. Bruwer, and L. Gwaka, “The feasibility of implementing the Committee of Sponsoring Organizations of the Treadway Commission enterprise risk management framework in South African small, medium and micro enterprises: a literature review,” International Journal of Business Continuity and Risk Management, vol. 12, no. 3, p. 208, 2022, doi: 10.1504/ijbcrm.2022.125288.
S. Kulić, “COSO integrated framework and interactive connection elements of internal control,” Ekonomski pogledi, vol. 20, no. 2, pp. 49–70, 2018, doi: 10.5937/ekopog1802049k.
E. Tambouris, M. Zotou, E. Kalampokis, and K. Tarabanis, “Fostering enterprise architecture education and training with the enterprise architecture competence framework,” International Journal of Training and Development, vol. 16, no. 2, pp. 128–136, May 2012, doi: 10.1111/j.1468-2419.2012.00400.x.
S. Sumarni Hussein, M. Naz’ri Mahrin, and N. Maarop, “Sustainability through Innovations Of Enterprise Architecture (EA) in Public Sector’s Management: Issues & Challenges,” Journal of Southeast Asian Research, pp. 1–13, Jul. 2017, doi: 10.5171/2017.722027.
K. F. Best, “OASIS standards work,” Markup Languages: Theory and Practice, vol. 3, no. 3, pp. 241–249, Dec. 2001, doi: 10.1162/109966201753750289.
H. Jung, “ISO/IEC 11179-based Blockchain System for Exchange Between CBDCs,” The Journal of Korean Institute of Information Technology, vol. 18, no. 7, pp. 43–50, Jul. 2020, doi: 10.14801/jkiit.2020.18.7.43.
Acknowledgements
Authors thank Reviewers for taking the time and effort necessary to review the manuscript.
Funding
No funding was received to assist with the preparation of this manuscript.
Ethics declarations
Conflict of interest
The authors have no conflicts of interest to declare that are relevant to the content of this article.
Availability of data and materials
No data available for above study.
Author information
Contributions
All authors have equal contribution in the paper and all authors have read and agreed to the published version of the manuscript.
Corresponding author
Marina Yancey
Marina Yancey
Faculty of Humanities, Ulyanovsk State Technical University, Ulyanovsk, Ulyanovsk Oblast, Russia, 432027.
Open Access This article is licensed under a Creative Commons Attribution NoDerivs is a more restrictive license. It allows you to redistribute the material commercially or non-commercially but the user cannot make any changes whatsoever to the original, i.e. no derivatives of the original work. To view a copy of this license, visit https://creativecommons.org/licenses/by-nc-nd/4.0/
Cite this article
Marina Yancey, “Advanced Framework for Integrating Risks into an Organizational Setting”, Journal of Enterprise and Business Intelligence, vol.4, no.1, pp. 042-050, January 2024. doi: 10.53759/5181/JEBI202404005.
