Annotated bibliography

Annotated Bibliography- ERM

Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015). Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), 7-35.

This paper focuses on how people’s engagement can influence job demands, organizational culture, job resources, organizational performance, meaningfulness and availability at work and competitive advantage. The authors explained that HRM practitioners needs to move out from their routine administrative culture and engage more in real time practices like personnel selection, performance management, training and development and socialization. The authors also presented their research evidence, which showed how well structured interrelationships between job factors, organizations context factors, individual employee motivational factors, employee psychological factors, could affect organizational outcomes and competitive advantage.

Erven, B. L. (2009). The role of human resource management in risk management. Department of Agricultural, Environmental and Development Economics, Ohio State University, 6.

This article written by a highly respected college professor and expert in personnel management effectively discusses and offered some tips for managing people and managing risks in business. The author focuses on two major roles for human resources in effective risks management. Firstly, people are a source of risks, which includes people doing sloppy works, shortage of employees, people refusing to take additional responsibilities or employees leaving after completion of training. The second role is consists of people who are key in handling risk. It includes people are not being honest to solve unexpected issues, employees don’t want to go for the extra mile for organizational advantage, or an important employee redesigning his own responsibilities to avoid delays in getting work done. He also stresses that effective integration of human resource management and risk management requires managers with certain skill sets that includes leadership skills, communication skills, training and motivation, dealing with conflict management, and evaluation. He also outlines the methods to develop and implement these skills toward a more efficient and profitable business.

Fadun, O. S. (2013). Risk management and risk management failure: Lessons for business enterprises. International Journal of Academic Research in Business and Social Sciences, 3(2), 225.

This paper reflects the recent economic instability that gives risk management a new focus and importance. It talks about how successful firms are started focusing on effectively integrate risk management at all levels of management process. The author also highlighted the importance of an effective risk management (ERM) in controlling and preventing risk management failure. I found this paper very helpful because it describes risk and risk management; describes importance and benefits of ERM to business enterprises; highlights the reasons why enterprises manage risks. At the same time, the paper also examines and identifies the reasons for failure in risk management, and how to minimize such occurrence. The author also argued that effective risk management is an integral part of the decision-making process at any level of the organization and ERM can improve business performance, thereby minimizing possibilities of overall business failures.

Ivascu, L., & Cioca, L. I. (2014). Opportunity risk: integrated approach to risk management for creating enterprise opportunities. Advances in Education Research, 49(1), 77-80.

In this paper the authors offers an in-depth look at the approaches enterprises needs towards risk management. They focuses on how risks are domination the overall business environment and opportunities are becoming a concern for all managers. They also defined the features of this risk management concept that includes opportunity, positive connotation, negative connotation, hazard and uncertainty. At the same time, paper also provides some good examples how risk management works as an integral part for assessment, control, treatment and monitoring risks. It also shows real assessment of the opportunities that will arise from risk management if it becomes an essential part of the enterprises. The authors concluded with the argument that risk management is becoming an intense concern for the organizations because it contributes to the goal of the enterprise, which increases their competitive advantage, and generate opportunities.

Lundqvist, S. A. (2014). An exploratory study of enterprise risk management: Pillars of ERM. Journal of Accounting, Auditing & Finance, 29(3), 393-429.

The authors in this paper tried to focus on the fact that how Enterprise risk management (ERM) has gained popularity over the years because of the response to pressure on organizations to holistically manage risks. The authors also introduces multiple frameworks for the implementation of ERM. This paper is an exploratory study of ERM targeted at determining the essential components of ERM based on how organizations actually implement ERM dimensions. The authors introduced four discrete components or pillars for ERM implementation from which two are prerequisite components and related to the general internal environment. From remaining two components, one has the defining attributes for ERM implementation and the other one deals with identifying risk management activities of the firms. The authors argued how these four components can challenge the existing ERM frameworks. They concluded that these four pillars of ERM could better reflect on how firms can implement ERM and provide a valuable impact on measuring risk management, which will lead us to more informative empirical studies of ERM.

Mikes, A., & Kaplan, R. S. (2013). Towards a contingency theory of enterprise risk management.

The authors in this paper discusses how Enterprise risk management (ERM) has become an important component of modern corporate governance reforms, with a set of principles, guidelines, and standards. This paper also portrays the current state of maturity of ERM and presented ERM as an evolving discipline with empirical findings. The paper examined the adoption and impact of ERM in enterprises, but it also argued that the studies are inconsistent and inconclusive, due to inadequate findings and specification of how ERM is used in practice. The authors tried to put forward a contingency theory of ERM in the paper, which identifies potential design parameters that will explain observable variation in the “ERM mix” adopted by organizations. They also added few new contingent variable: the type of risk that a specific ERM practice addresses and they concluded on the argument that this risk types and the ERM mix can have a great impact about organizational outcome and effectiveness.

Zhao, X., Hwang, B. G., & Pheng Low, S. (2014). Enterprise risk management implementation in construction firms: An organizational change perspective. Management Decision, 52(5), 814-833.

In this paper, the authors first identified the critical drivers for implementing enterprise risk management in firms. It provides a very important example of ERM implementation of a Singapore based construction firm. After that, the authors provided and interpretation of those critical drivers with help of organizational change theories. Lastly, the authors provides promising strategies to strengthen the drivers and overcome all the hindrances.