STRATEGIC INTEGRATION OF ENTERPRISE RISK MANAGEMENT FOR COMPETITIVE ADVANTAGE

Abstract

This research paper investigates the strategic integration of Enterprise Risk Management (ERM) and its potential to propel organizations toward competitive advantage amidst the complexities of the contemporary business landscape. A comparative case study approach analyzes two organizations recognized for their exemplary ERM practices. The study investigates how these organizations cultivate resilience, enhance the quality of strategic decision-making, and unlock innovation capabilities by integrating ERM. Critical success factors such as unwavering executive sponsorship and developing a risk-aware culture are examined. The article also explores the ongoing challenge of quantifying certain strategic risks and offers strategies for addressing them.  Finally, recommendations are provided to guide organizations seeking to strategically integrate ERM, focusing on seamlessly incorporating risk assessments into strategic planning, fostering risk awareness throughout all organizational levels, and utilizing specialized technology solutions to streamline risk management processes.