A need for a challenge culture in enterprise risk management

A recent study published jointly by the Institute of Management Accountants (IMA®) and the Association of Chartered Certified Accountants (ACCA) posits that a challenge culture can be an effective way of ensuring that a sophisticated risk management system, such as enterprise risk management (ERM), evolves beyond a mere shallow compliance exercise. This article continues the conversation on approaches that help to ensure a risk challenge culture permeates throughout organizations. Real-world examples are given of how the IMA-ACCA study discusses system design and implementation approaches that are commonly considered to be part of the successful implementation of any strategic initiative but are framed in a risk challenge culture context. Using specific examples, this article extends the discussion of General Motor’s past ERM deficiencies and, in particular, its failure to correct its ignition-switch problem in a timely manner, including the significant financial and legal consequences.

To avail of this paper, please contact the Society on info@actuaries.ie.  Further information on the paper is available here

Source
Journal of Business and Accounting
Length of Resource
10 pages
Author
Thomas L. Barton, John B. MacArthur
Date Published
Publication Type
paper
Resource Type
academic

ResourceID: 142302

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