Risk Taxonomy: a tool of Enterprise Risk Management – ERM
DOI:
https://doi.org/10.36428/revistadacgu.v15i28.645Keywords:
Taxonomy, Enterprise Risk Management, ERMAbstract
Taxonomy is a classification rule applied to a set of objects, successfully used in the areas of biology, education, and medicine. In the challenging environment in which organizations find themselves, risk management is an essential tool to respond adequately to the challenges that emerge from the actions taken to achieve organizational objectives. The need for collective risk assessment to which institutions are exposed highlights taxonomy as a solution to enable integrated risk management and strengthen the company's Enterprise Risk Management (ERM) program. The literature review herein, focusing on the evaluation of the results from the implementation of ERM programs, presents the following conclusions: a) corporate risk management can be seen as a combination of risk governance and integrated risk management. Risk governance establishes the guidelines and risk management structures, roles and responsibilities in order to ensure the maintenance and effectiveness of the ERM program, while integrated management comprises the enabling of systems and processes capable of providing an adequate response to the collectivity of risks that may impact the objectives of the organization; b) there are several studies that defend positive results, including financial, resulting from the implementation of ERM programs, which suggests delivery of value that goes beyond the benefit of adherence to regulatory requirements provided for some sectors; c) risk taxonomy is an incipient theme in the MRE literature, despite the promising potential to manage the collectivity of risks to which companies are exposed.
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