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How the enterprise risk management function influences decision-making in the organization – A field study of a large, global oil and gas company

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  • Meidell, Anita
  • Kaarbøe, Katarina

Abstract

Risk management has been a discipline for decades. However, organizations have only recently begun to introduce a separate enterprise risk management (ERM) function. The aim of this study is to examine the transformation of the ERM function's influence in a company over time. We use a historical case study informed by social theory on how to influence others to investigate this phenomenon. The findings show that the construction of risk technologies over time triggers a change in the ERM function's influence on decision-making. Two processes of influence are used by the ERM function: selling new ideas and managing knowledge across boundaries. In the first process, the ERM function attempts to vertically influence top management's decisions regarding acceptance of new risk management technologies. In the second process, the ERM function attempts to horizontally influence decision makers to use risk knowledge in decision processes. Theoretically, our findings contribute to our understanding of how the ERM function influences decision-making in organizations over time.

Suggested Citation

  • Meidell, Anita & Kaarbøe, Katarina, 2017. "How the enterprise risk management function influences decision-making in the organization – A field study of a large, global oil and gas company," The British Accounting Review, Elsevier, vol. 49(1), pages 39-55.
    • Handle: RePEc:eee:bracre:v:49:y:2017:i:1:p:39-55
    DOI: 10.1016/j.bar.2016.10.005
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    Cited by:

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    3. José Ruiz-Canela López, 2021. "How Can Enterprise Risk Management Help in Evaluating the Operational Risks for a Telecommunications Company?," JRFM, MDPI, vol. 14(3), pages 1-26, March.
    4. Martin R. W. Hiebl, 2024. "The integration of risk into management control systems: towards a deeper understanding across multiple levels of analysis," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 35(1), pages 1-16, March.
    5. Oleg S. Sukharev, 2021. "Functional approach in decision-making: Dysfunction and efficiency of rules and systems," Upravlenets, Ural State University of Economics, vol. 12(1), pages 2-17, March.
    6. Aynaz Monazzam & Jason Crawford, 2024. "The role of enterprise risk management in enabling organisational resilience: a case study of the Swedish mining industry," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 35(1), pages 59-108, March.

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