Introduction: Why Enterprise Risk Management Needs a Rethink

Unfortunately, enterprise risk management (ERM) activities are not high on the priority agenda of senior management in both public and private sectors. Over the years, risk management experts or internal auditors have continued to raise awareness about ERM among senior management. The purpose of this chapter is to examine the role of international standards and frameworks in the failure of ERM. Conceptual ambiguity and methodological gaps in current standards and frameworks make it difficult to implement ERM effectively. Enterprise risk management is now far from being coordinated with core management and audit functions such as strategic management, internal control, and internal audit as well as with core business functions such as procurement, production, marketing, and financing. Therefore, ERM, which aims to eliminate the unit-based silo approach of traditional risk management, adopted a function-based silo approach. In this case, focusing on managing fewer and more significant risks associated with high-level objectives, rather than all business processes of the organization, and making higher contributions to the strategy formulation phase of other corporate functions can increase the success of ERM implementation.