Authors: Margaret Woods
Addresses: Nottingham University Business School, Wollaton Road, Nottingham, UK
Abstract: Definitions and perceptions of the role and styles of risk management, and performance management/strategic control systems have evolved over time, but it can be argued that risk management is primarily concerned with ensuring the achievement of strategic objectives. This paper shows the extent of overlap between a broad-based view of risk management, namely Enterprise Risk Management (ERM), and the balanced scorecard, which is a widely used strategic control system. A case study of one of the UK|s largest retailers, Tesco plc, is used to show how ERM can be introduced as part of an existing strategic control system. The case demonstrates that, despite some differences in lines of communications, the strategic controls and risk controls can be used to achieve a common objective. Adoption of such an integrated approach, however, has implications for the profile of risk and the overall risk culture within an organisation.
Keywords: balanced scorecard; case study; corporate governance; enterprise risk management; ERM; risk controls; strategic control; Tesco plc.
International Journal of Risk Assessment and Management, 2007 Vol.7 No.8, pp.1074 - 1088
Published online: 02 Oct 2007 *Full-text access for editors Access for subscribers Purchase this article Comment on this article