IDEAS home Printed from https://ideas.repec.org/a/eme/jrfpps/jrf-10-2016-0131.html
   My bibliography  Save this article

Enterprise risk management: a capability-based perspective

Author

Listed:
  • Yevgen Bogodistov
  • Veit Wohlgemuth

Abstract

Purpose - The purpose of this study is to enhance the existing enterprise risk-management (ERM) theory by introducing both a resource-based view and a dynamic capability perspective. These strategic management concepts might resolve several theoretical shortcomings in the field of risk management. The concept of risk-management capabilities is proposed as an explanation of a firm’s risk resilience. Design/methodology/approach - This paper is conceptual in nature. For illustrative purposes, the paper refers to practical examples. Findings - First, the resource-based view provides a framework that helps to set priorities in risk management. Second, the dynamic capability perspective illustrates how firms can handle unforeseen events. Third, it is proposed that dynamic capabilities are needed to allow a constant reassessment of the impact of specific resources and, consequently, of ERM priorities. Fourth, a risk-management capability, as an integral part of a dynamic capability, allows firms to develop risk resilience in turbulent environments. Research limitations/implications - This paper develops an enhanced framework for ERM within specific boundary conditions. It shows how priorities at the strategic level are to be set, and how these priorities influence the operational level of risk management. Practical implications - The framework provides clear guidelines on setting priorities in ERM and implementing a risk-management process within firms. Originality/value - This study contributes to the theoretical literature on ERM by enhancing it through a new framework. The resource-based view and dynamic capability perspective benefit through insights from risk-management literature.

Suggested Citation

  • Yevgen Bogodistov & Veit Wohlgemuth, 2017. "Enterprise risk management: a capability-based perspective," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 18(3), pages 234-251, May.
    • Handle: RePEc:eme:jrfpps:jrf-10-2016-0131
    DOI: 10.1108/JRF-10-2016-0131
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JRF-10-2016-0131/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JRF-10-2016-0131/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JRF-10-2016-0131?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aldo AMERTA & Yanuar NANOK SOENARNO, 2022. "The Impact of Enterprise Risk Management, Corporate Social Responsibility, and Sustainability Report on Firm Value in Banking Sector of Indonesia, Malaysia and Thailand," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 3(5), pages 62-72, May.
    2. Fabio Monteduro & Ilenia Cecchetti & Ylenia Lai & Veronica Allegrini, 2021. "Does stakeholder engagement affect corruption risk management?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(3), pages 759-785, September.
    3. Pashkus V.Y. & Pashkus N. A., 2015. "Breakthrough Positioning Strategy: Usage At The Enterprise Level Russian Pharmaceutical Cluster," Annals of marketing-mba, Department of Marketing, Marketing MBA (RSconsult), vol. 2, May.
    4. Abdullah Aloqab & Farouk Alobaidi & Bassam Raweh, 2018. "Operational Risk Management in Financial Institutions: An Overview," Business and Economic Research, Macrothink Institute, vol. 8(2), pages 11-32, June.
    5. Grace Kakiya & Lucy Rono & Jared Mose, 2019. "Effect of Risk Management, Intellectual Capital on Performance of State Corporations in Kenya: Moderating Approach," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 12(3), pages 51-61, December.
    6. Ben Kajwang, 2022. "Theoretical review of enterprise risk management culture drivers for insurance firms in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(5), pages 210-217, July.
    7. Agnieszka Parkitna, 2021. "Safe Business in a Pandemic Risk Environment," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 68-77.
    8. YACOUBI Larbi, 2024. "Factors Underlying Organizational Resilience in SMEs," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(2), pages 1458-1469, February.
    9. Mehmet Civelek & Michal Erben & Michal Kuděj & Zuzana Vincúrová & Wan Mohd Hirwani Wan Hussain, 2024. "Exploring the influence of risk management capabilities on SMEs’ export intentions: a cross-country analysis," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 2369-2396, September.
    10. Josphat Nyoni & Manoneka Sithole & Pfumaindisu Rebecca Anesu Mutyambizi, 2022. "Concept paper on the Leadership capabilities to grow female owned enterprises in the clothing sector post COVI-19 pandemic period. Achieving gender equity through business growth," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(9), pages 735-741, September.
    11. 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.
    12. Conz, Elisa & Magnani, Giovanna, 2020. "A dynamic perspective on the resilience of firms: A systematic literature review and a framework for future research," European Management Journal, Elsevier, vol. 38(3), pages 400-412.
    13. Patrick Dahmen, 2023. "Organizational resilience as a key property of enterprise risk management in response to novel and severe crisis events," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 26(2), pages 203-245, July.
    14. Songling Yang & Muhammad Ishtiaq & Muhammad Anwar, 2018. "Enterprise Risk Management Practices and Firm Performance, the Mediating Role of Competitive Advantage and the Moderating Role of Financial Literacy," JRFM, MDPI, vol. 11(3), pages 1-17, June.
    15. Najat Shakir Mahmood & Elsadig Musa Ahmed, 2023. "Mediating effect of risk management practices in Iraqi private banks financial performance," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(2), pages 358-377, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jrfpps:jrf-10-2016-0131. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.