Strategic Perspective on Enterprise Risk Management

Robert Rieg, Ute Vanini and Werner Gleißner
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Robert Rieg: Aalen University
Ute Vanini: Kiel University of Applied Science
Werner Gleißner: Future Value Group AG

Chapter Chapter 7 in Enterprise Risk Management, 2025, pp 123-145 from Springer

Abstract: Abstract The implementation of the operational ERM process requires a strategic framework that links ERM with the corporate strategy and goals, the company’s risk-bearing capacity, and its performance and incentive systems. The risk-bearing capacity depends on a company’s financial reserves, liquidity, and creditworthiness, which can be measured by its financial rating. The risk-bearing capacity is related to the firm’s overall risk exposure under different scenarios or for different probabilities of occurrence. The targeted risk-return profile, on the other hand, is an expression of the company’s risk culture and the risk appetite of its shareholders and top management.

Keywords: Insolvency; Rating; Risk appetite; Risk-bearing capacity; Risk culture; Risk tolerance; Risk strategy (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-031-86425-4_7

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DOI: 10.1007/978-3-031-86425-4_7

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