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Wednesday, November 6, 2013

Contingency Theory in ERM

In Kaplan's view of the world of risk, Enterprise Risk Management needs to move towards a contingency theory, it is currently immature but at the very least an evolving discipline.

Last month, Robert Kaplan and Anette Mikes released their paper "Towards a Contingency Theory of Enterprise Risk Management" which is based on a ten year field project of over 250 interviews with senior risk officers. Their findings are quite disturbing or to cite the author's words "many organisations remain dissatisfied with existing risk management practices" and the risk management standards of ISO 31000 and COSO come under direct line of fire.