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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:

    1. Sidney Apaloo & Dzah Bright, 2022. "The Effect of Risk Management Practices on Performance of Small and Medium Scale Enterprises," Enterprise Risk Management, Macrothink Institute, vol. 7(1), pages 1-1, December.
    2. Müzeyyen Çiğdem Akbaş, 2024. "Measuring the impact of enterprise risk management on performance, value, and risk indicators of Borsa Istanbul XBANK companies with data mining prediction models," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-19, December.
    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. 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.

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