Enterprise Risk Management, 2nd Edition

CHAPTER 39A Review of Academic Research on Enterprise Risk Management

 

DONALD PAGACH

Professor of Accounting and Director of Research, Enterprise Risk Management Initiative, Poole College of Management, North Carolina State University

 

HEATHER PASCANIK

Consultant, Guidehouse

 

INTRODUCTION

Over the past 20 years there has been a significant increase in the adoption of enterprise risk management (ERM) by organizations throughout the world. As that adoption process increased, academic researchers took notice and began the process of examining the implementation issues, the value proposition, and the operating performance effects on organizations. In this chapter we examine the progression of ERM academic research since 2005; in addition we examine ERM case research. Our review covers four specific areas. First, we review academic papers focused on identifying firms adopting ERM processes. Second, we review research that examined firm characteristics associated with implementation of ERM. Subsequently, we review one of the more difficult areas of ERM research, which is determining if ERM creates value for organizations. Finally, we review academic business cases addressing ERM.

We use the Web of Science database to find published articles that examine ERM. The Web of Science is an indexing website that allows for the search of most academic journals published since 1900 using numerous search terms, such as author or topic. For our search we used the term “enterprise risk management” ...