To read the full version of this content please select one of the options below:

Enterprise-wide risk management and organizational fit: a comparative study

Michela Arnaboldi (Dipartimento di Ingegneria Gestionale, Politecnico di Milano, Milano, Italy)
Irvine Lapsley (IPSAR, University of Edinburgh, Edinburgh, UK)

Journal of Organizational Effectiveness: People and Performance

ISSN: 2051-6614

Article publication date: 25 November 2014

Abstract

Purpose

The purpose of this paper is to analyse enterprise risk management (ERM), its organizational translation and fit, investigating in particular its impact on a major control process: budgeting.

Design/methodology/approach

The research was carried out with a multiple case study approach including three companies in the UK. This approach was chosen to gain a deeper understanding of the nature of ERM within each of the organizations and the factors shaping its achievements.

Findings

Three main issues emerged. The first is related specifically to ERM implementations and its variety in practice. Second, ERM champions emerged as central in shaping the managerial usefulness of ERM. Third, the cases showed diversity of practice in term of integration with budgeting which range from a voluntary full integration to an voluntary separation.

Practical implications

The cases analysed highlighted that the integration between risk and other control processes is a challenge but also a strategic choice. Although conceding that ERM implementation is not linear, companies should reflect upon the type of relations they would like to have between different processes of control.

Originality/value

The results of the paper explored ERM organizational fit, evidencing variety in practice and theoretically discussing how this diversity is linked to organizational and technical issues.

Keywords

Acknowledgements

The support of CIMA General Charitable Trust is gratefully acknowledged. The authors thank also the Institute of Risk Management for its assistance in accessing the UK case studies.

Citation

Arnaboldi, M. and Lapsley, I. (2014), "Enterprise-wide risk management and organizational fit: a comparative study", Journal of Organizational Effectiveness: People and Performance, Vol. 1 No. 4, pp. 365-377. https://doi.org/10.1108/JOEPP-09-2014-0056

Publisher

:

Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited