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ERM and strategic planning: a change in paradigm

Author

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  • Elizabeth M. Pierce

    (Saginaw Valley State University)

  • James Goldstein

    (Canisius College)

Abstract

In 2014, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) announced that they would embark on the revision of their Enterprise Risk Management—Integrated Framework (2004). After 2 years of deliberations and a 6-month evaluation period, COSO has finally released its Enterprise Risk Management: Integrating Strategy and Performance on September 6, 2017. One of the primary issues that arose after the release of the original Framework was the awareness that organizations have failed to adopt an integrated treatment of Enterprise Risk Management (ERM) and strategic planning, termed Strategic Risk Management (SRM). This is especially troubling as the benefits of SRM have been recognized by academics, practitioners, and regulators. The new Framework takes significant steps to promote a mind shift, or paradigm change, to a more integrative approach to ERM and strategic planning. Pierce and Goldstein, in their previous work (in: 14th global conference on business and economics, Oxford, UK, 1–2 October, 2016), highlighted language and diagrams in the original Framework that may have led to the siloed treatment of both processes. In this paper, we examine changes in the new Framework to determine whether they sufficiently address these changes in order to move organizations more toward Strategic Risk Management.

Suggested Citation

  • Elizabeth M. Pierce & James Goldstein, 2018. "ERM and strategic planning: a change in paradigm," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(1), pages 51-59, February.
    • Handle: RePEc:pal:ijodag:v:15:y:2018:i:1:d:10.1057_s41310-018-0033-3
    DOI: 10.1057/s41310-018-0033-3
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    References listed on IDEAS

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    1. Chiara Verbano & Karen Venturini, 2011. "Development paths of risk management: approaches, methods and fields of application," Journal of Risk Research, Taylor & Francis Journals, vol. 14(5), pages 519-550, May.
    2. Frank Schiller & George Prpich, 2014. "Learning to organise risk management in organisations: what future for enterprise risk management?," Journal of Risk Research, Taylor & Francis Journals, vol. 17(8), pages 999-1017, September.
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    Cited by:

    1. Ivana Dvorski Lacković & Nataša Kurnoga & Danijela Miloš Sprčić, 2022. "Three-factor model of Enterprise Risk Management implementation: exploratory study of non-financial companies," Risk Management, Palgrave Macmillan, vol. 24(2), pages 101-122, June.
    2. Munther Al-Nimer & Sinan S. Abbadi & Ahmad Al-Omush & Habib Ahmad, 2021. "Risk Management Practices and Firm Performance with a Mediating Role of Business Model Innovation. Observations from Jordan," JRFM, MDPI, vol. 14(3), pages 1-20, March.
    3. Novaković Vesna & Milovanović Mirjana & Gligorić Dragan, 2022. "Possibilities for Public Sector Management Improvement by the Digitalization of Financial Management and Control System in the Western Balkan Countries," Journal of Forensic Accounting Profession, Sciendo, vol. 2(2), pages 56-77, December.

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