Building a Multidimensional Risk Management Strategy for the Enterprise: An Integrated Approach to Enterprise Risk | Chapter 7 | New Visions in Science and Technology Vol. 4

Risk management has been identified as a critical topic for enterprises, not only in terms of analysing and responding to risk, but also in terms of identifying opportunities and adding value to businesses. The traditional approach to risk management is still used by the majority of enterprises today. This strategy is based on stovepipe risk management, in which the focus is mostly on tactical business challenges and does not consider strategic risk sources. Moving to an enterprise risk management (ERM) system is common, although the maturity level varies from one firm to the next. Despite the fact that ERM eliminates many of the shortcomings of traditional risk management methods, it nevertheless has its own set of limitations and obstacles. Various organisations are working to build an enterprise risk management framework since it has been agreed that it plays a significant role in shaping organizational-wide risk strategies and policies in a common governance structure. The perceived silo-based nature of risk management, as well as the integration and communication of key risk functions in a holistic manner, remains a difficulty. The main goal of this paper is to address this significant issue by proposing a multidimensional risk management framework with three key domains: a Business Process-Centric Risk Management System (BPC-RMS), a Risk Dialogue Matrix (RDM) based on Expert rules and Data Mining, and a Risk Management Program (RMP) led by a Risk Management Office. A holistic multidimensional risk management approach considers all of the enterprise's functional areas, identifies all of the risks in each, evaluates their relationships and implications, and ensures that all risk actions are balanced. The proposed framework is intended to expand on risk management standards and best practises. We propose and test a multidimensional framework to integrate these risk management ideas into the enterprise's business process using design science methodology.

 

Author (S) Details

Munir Majdalawieh
Zayed University, College of Technological Innovation, United Arab Emirates..

John Gammack
Zayed University, College of Technological Innovation, United Arab Emirates.

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