Enterprise Risk Management

CHAPTER 23Academic Research on Enterprise Risk Management

SUBRAMANIAN R. IYER

Student in Finance, The Spears School of Business, Oklahoma State University

DANIEL A. ROGERS

Associate Professor of Finance, Portland State University

BETTY J. SIMKINS

Williams Companies Professor of Business and Professor of Finance, Oklahoma State University

INTRODUCTION

Despite the growing interest of practitioners in enterprise risk management (ERM) and numerous surveys by providers of ERM “solutions” (such as governance, risk, and compliance [GRC] software), very little academic research has been conducted to provide a better understanding of ERM. For example, researchers study topics such as what ERM is (or is not), practical measurement of the degree to which ERM is implemented within different industries, factors determining ERM’s implementation (or lack thereof), the effect of ERM implementation on business market values, and the interaction of ERM with overall business objectives.

The purpose of this chapter is to provide a review of academic research to date on ERM. To conduct the review, we searched academic journals and other databases of academic research (such as the Social Science Research Network) for papers written on ERM. We limit our focus to papers that can be classified as either academic research or case studies that would be appropriate for a classroom setting. To qualify as academic research, the paper had to be published in a peer-reviewed academic journal, be under review ...