Looking under the Lamppost? A Research Agenda for Increasing Enterprise Risk Management’s Usefulness to Practitioners



Enterprise risk management (ERM), a process by which organizations assess, manage and monitor risk from all sources for the corporation as a whole, has drawn increasing attention from both researchers and practitioners. We propose, however, that like the drunken person in the above anecdote, much of ERM research looks at issues somewhat distant from the reality experienced by managers. Focusing on ERM for non-financial companies, this paper explores the reasons for this distance, and lays out an agenda for future ERM research.


Risk Management Potential Outcome Strategic Management Journal Internal Auditor Risk Management System 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Bowman EH. (1980). A risk/return paradox for strategic management. Sloan Management Review 21(3): 17–31.Google Scholar
  2. Bromiley P. (1991). Testing a causal model of corporate risk taking and performance. Academy of Management Journal 34: 37–59.CrossRefGoogle Scholar
  3. Bromiley P, McShane M, Nair A, Rustambekov E. (2013). Enterprise risk management: Review, critique, and research directions. Long Range Planning forthcoming.Google Scholar
  4. Bromiley P, Rau D. (2010). Risk taking and strategic decision making, in Nutt P and Wilson D (eds), Handbook of Decision Making. John Wiley & Sons, 307–326.Google Scholar
  5. Bromiley P, Rau D.(2011). Strategic decision making, in Zedeck S (ed.), APA Handbook of Industrial and Organizational Psychology. American Psychological Association, 161–182.Google Scholar
  6. Bromiley P, Rau D. (2013). Towards a practice-based view of strategy. Strategic Management Journal.Google Scholar
  7. Bromiley P, Stansifer W. (1994). Loan size limits: A simple model. Journal of Commercial Lending 77(4): 17–28.Google Scholar
  8. Casualty Actuarial Society (CAS) (2003). Overview of enterprise risk management. Retrieved on March 2, 2014 from
  9. Camerer CF, Kunreuther H. (1989). Decision processes for low probability events: Policy implications. Journal of Policy Analysis and Management 8(4): 565–592.CrossRefGoogle Scholar
  10. Coyne T. (2012). Not losing comes first: A practical look at the challenges of enterprise risk management. (May 13, 2012). Available at SSRN: or
  11. Cyert RM, March JG. (1963). A Behavioral Theory of the Firm. Prentice-Hall: Englewood Cliffs, NJ.Google Scholar
  12. Das TK, Teng B. (1999). Cognitive biases and strategic decision processes: An integrative perspective. Journal of Management Studies 36(6): 757–778.CrossRefGoogle Scholar
  13. Fiegenbaum A, Thomas H. (1986). Dynamic and risk measurement perspectives on Bowman’s risk-return paradox for strategic management: An empirical study. Strategic Management Journal 7: 395–407.CrossRefGoogle Scholar
  14. Institute of Internal Auditors. (2007). Four Approaches to Enterprise Risk Management. By J Roth and the Institute of Internal Auditors Research Foundation: Altamonte Springs, FL.Google Scholar
  15. Knapp MC.(2009). New Cent ury Financial Corporation. In Contemporary Auditing (7th ed.), Cengage Learning, 135–151.Google Scholar
  16. Knight FH. (1921). Risk, Uncertainty, And profit. Houghton Mifflin reprint, Chicago: University of Chicago, 1971.Google Scholar
  17. LA Times (2009). Countrywide case could be tough for SEC. July 4, 2009: B1 and B5.Google Scholar
  18. Lee B, Preston F, Green G. (2012). Preparing for High-Impact, Low Probability Events: Lessons from Eyjafjallajokull. A Chatham House Report. London: Chatham House.Google Scholar
  19. MacCrimmon KR, Wehrung DA. (1986). Taking Risks: The Management of Uncertainty. Free Press: New York.Google Scholar
  20. MacCrimmon KR, Wehrung DA .(1990). Characteristics of risk taking executives. Management Science 36(4): 422–435.CrossRefGoogle Scholar
  21. March JG, Shapira Z. (1987). Managerial perspectives on risk and risk taking. Management Science 33: 1404–1418.CrossRefGoogle Scholar
  22. Missal MJ. (2008). Final Report of Michael J. Missal Bankruptcy Court Examiner for the United States Bankruptcy Court for the District of Delaware in re: New Century TRS Holdings, Inc.Google Scholar
  23. Mitra S, Tong J. (2010). Risk measures in quantitative finance. International Journal of Business Continuity and Risk Management 1(2): 125–135.CrossRefGoogle Scholar
  24. The Risk Management Society (RIMS). (2011). FAQ on SRM and ERM. Why strategic management? Retrieved March 3, 2014, from
  25. Shapira ZB. (1994). Risk Taking: A Managerial Perspective. Russell Sage: New York.Google Scholar
  26. Tversky A, Kahneman D. (1974). Judgement under uncertainty: Heuristics and biases. Science 185: 1124–1131.CrossRefGoogle Scholar
  27. Verbrugge J, Smith C, Niehaus G, Briscoe C, Coleman W, Lawder K, Ramamurtie S, Chew D. (2003). University of Georgia roundtable on enterprise-wide risk management. Journal of Applied Corporate Finance 15(4): 8–26.CrossRefGoogle Scholar
  28. Yates JF. (ed.) (1992). Risk-Taking Behavior. John Wiley & Sons: Chichester, England.Google Scholar

Copyright information

© Philip Bromiley and Devaki Rau 2014

Authors and Affiliations

There are no affiliations available

Personalised recommendations