Enterprise Risk Management: Theory and Practice

ArXiv ID: ssrn-921402 “View on arXiv”

Authors: Unknown

Abstract

In this paper, we explain how enterprise risk management creates value for shareholders. In contrast to the existing finance literature, we emphasize the organi

Keywords: Enterprise Risk Management (ERM), Shareholder Value, Risk Management Framework, Organizational Design, Strategic Risk, Corporate Finance

Complexity vs Empirical Score

• Math Complexity: 1.0/10
• Empirical Rigor: 2.0/10
• Quadrant: Philosophers
• Why: The paper is conceptual and qualitative, focusing on organizational theory and implementation guidelines without heavy mathematical derivations or formal models. It lacks backtests, datasets, or empirical performance metrics, positioning it as a theoretical framework rather than an empirical or quantitative study.

  flowchart TD
    A["Research Question:<br>How does ERM create shareholder value?"] --> B{"Methodology"}
    B --> C["Theoretical Framework Analysis"]
    B --> D["Organizational Design Review"]
    B --> E["Strategic Risk Assessment"]
    C & D & E --> F{"Computational Process:<br>Value Creation Model"}
    F --> G["Outcomes"]
    G --> H["ERM Framework<br>Enhances Shareholder Value"]
    G --> I["Organizational Design<br>Key to ERM Success"]
    G --> J["Strategic Risk Integration<br>Drives Competitive Advantage"]