Closing the Gap: Between Traditional and Enterprise Risk Management Systems
- Jack Ogutu (Millersville University) | Mark R. Bennett (Risk Innovation Group) | Richard Olawoyin (Risk Innovation Group)
- Document ID
- American Society of Safety Engineers
- Professional Safety
- Publication Date
- April 2018
- Document Type
- Journal Paper
- 42 - 47
- 2018. American Society of Safety Engineers
- 2 in the last 30 days
- 60 since 2007
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- This article aims to help readers differentiate between traditional risk management (TRM) and enterprise risk management (ERM).
- It identifies gaps that exist between TRM and ERM.
- Finally, readers will learn to apply practical steps to a more comprehensive approach to risk management that are transferable to global ERM needs.
This article is part of an ongoing collaborative effort to promote learning and innovative engagement in the risk space. The initiative includes ongoing research, bringing industry’s perspective to the classroom as well as educational publications and student mentoring initiatives.
The study presented aims to deconstruct the challenges and opportunities in the risk and insurance industry from the perspective of the large employer. The large employer space has been selected as a focus of study due to the collective baseline of knowledge and resources that this sector of industry offers. Large employers attract some of the best and most forward-thinking professionals who are continuously making advancements through working in larger, more complex environments that allow for accelerated industry learning and evolution of trial and error.
The study focuses on what large employers do best-in-class and where they struggle. Best-in-class practices provide industry learning that is transferable at all levels and sizes of organizations. Struggles are transitioned into development to explore better, more efficient and innovative ways for risk teams to operate. To this end, the article explores the differences, connections and opportunities between traditional risk management and enterprise risk management.
TRM & ERM
Risk management breaks down into traditional risk management (TRM) and enterprise risk management (ERM), which are two different methods used to achieve some of the same goals. Dionne (2013) defines TRM as a system that focuses on pure risks and views each risk separately.
|File Size||359 KB||Number of Pages||6|