By The Numbers: Individual Bias and Enterprise Risk Management

In theory, enterprise risk management (ERM) appears to be a succinct and effective risk management model. In practice, as is the case with most managerial techniques, the devil is in the implementation. This study explores this issue by examining how the composition of ERM groups determines which ri...

Full description

Saved in:
Bibliographic Details
Published inJournal of behavioral and applied management Vol. 13; no. 1; p. 5
Main Authors Blaskovich, Jennifer, Taylor, Eileen Z.
Format Journal Article
LanguageEnglish
Published Glendale Institute of Behavioral and Applied Management 01.09.2011
Subjects
Accounting
Bias
Boards of directors
Corporate governance
Enterprise risk management
Experiments
Finance
Insurable risks
Managers
Regulatory reform
Studies
United States > US
Online AccessGet full text

Cover

More Information
Summary:In theory, enterprise risk management (ERM) appears to be a succinct and effective risk management model. In practice, as is the case with most managerial techniques, the devil is in the implementation. This study explores this issue by examining how the composition of ERM groups determines which risks are managed and which risks are ignored. In two experiments, we find that groups with accounting or financial backgrounds place greater emphasis on financial risks compared with cross-functional groups. Results suggest that organizations will achieve different ERM outcomes from using cross-functional groups than financially oriented group.
ISSN:1930-0158
1930-0158
DOI:10.21818/001c.17867