Document Type

Book Chapter

Publication Date

2015

Publication Title

Routledge Companion on Strategic Risk Management

Abstract

Within the discipline of enterprise risk management (ERM), strategic risk management (SRM) has become a subject of increasing interest to practitioners and academics. To our knowledge, the term “strategic risk management” first appeared in the management literature in 1985 and 1986 (Jammine, 1985; Figenbaum & Thomas, 1986) and in the academic finance literature in 1990 (Rawls and Smithson, 1990), although early usage of the term did not clearly relate to later conceptions. The phrase has been in use even longer than ERM (Bromiley, McShane, Nair, and Rustambekov, 2014). Even with this longevity, the meaning of the term remains unclear, with confusion increasing with the advent of ERM. For example, does SRM mean the management of a specific category of risks known as “strategic risks” (AICPCU, 2013) or does SRM mean strategic actions/responses taken to mitigate major uncertainties facing the enterprise? Can any type of risk potentially become a strategic risk, or are only certain types of risk strategic? Is SRM a separate type of risk management or a subset of ERM?

Comments

Pre-Print of a chapter to be included in T. J. Andersen (Ed.), The Routledge Companion to Strategic Risk Management (pp. 140-156). Routledge New York, NY 10017.

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