Enterprise Risk Management for Non-Financial Companies – From Risk Control and Compliance to Creating Shareholder Value

Discussion on the development of a clear and specific understanding of whether, and how, current and new activities of the ERM function can create shareholder value. We argue that the ongoing optimization of those capabilities—so that over time they create more net savings, reduce the volatility of the company’s cash flow and reduce the likelihood of bankruptcy — are the risk management activities that can create shareholder value.

We also briefly illustrate how these activities can be carried out in practice.