Enterprise Risk Management And Corporatw Governance

Enterprise risk management is a topic that converges corporate governance and risk management in a way that managers and stakeholders of the company can have a clear path to assessing dealing with risk within an appropriate corporate governance system. The present paper, while not keen to provide an introduction into the terminology, definitions or classifications – since our goal is much past this – attempts to build up a viable framework for managers to deal with enterprise risk management in their relationship with the wide array of stakeholders. Therefore, the purpose of the paper is to compact and correlate the available information from literature, policy makers, case studies, in order to achieve a considerate framework for both the needs of management and stakeholders. Without disregard to the complexity of the topic, the author attempts to summarize a basic framework that can further be expanded in accordance with the company’s requirements and takes into consideration the general expectations from stakeholders that can further expand into more specific ones and then result in a tailor made plan for dealing with risk. Starting from a literature review focused on several policy maker views and experts’ inputs on enterprise risk management, the papers manages to put together and create synergies between the steps that a company should take in its risk management initiatives. Without leaving aside the corporate governance principles, we make an effort to illustrate the ideas that should be at the centre of risk identification and evaluation and further we dedicate risk evaluation output – a risk report – and risk mitigation to ensuring communication with the stakeholders in a transparent and appropriate manner. Due to the fact that risk management can be viewed in a variety of ways, as companies are widely diverse, the proposed framework does not benefit from fixed measures, they have to be adapted both in terms of array of details implied as well as assigned interest and importance.