Enterprise Risk Management – Overview & Practical Implementation Guide

This paper overviews the role that Enterprise Risk Management (ERM) takes in the contemporary risk management with the emphasis on non-financial corporations. It is constructed as a theoretical overview in the first part addressing the concept of ERM, comparison with the traditional risk management in general and the potential benefits that a successful ERM program can produce for the company that decides to implement it and the benefits for the stakeholders in general. The second part is intended to present a practical case study guide for implementation of Enterprise Risk Management in a company that does not have a formal risk management directorate. The company selected is Makpetrol AD for practical purposes, because as a current Head of the Finance Department there I know the way the company is operating and the internal procedures. Therefore, the concept guideline presented in the paper can be used in the company. Still, with this paper also in the second part the main intention is to offer general guidelines that can be helpful for any organization that decides to implement Enterprise Risk Management.