Linking Risk Management to Strategic Controls: A Case Study of Tesco Plc

International Journal of Risk Assessment and Management, Vol. 7, No. 8, pp. 1074-1088, 2008

15 Pages Posted: 13 Mar 2009

Date Written: February 1, 2008

Abstract

Definitions and perceptions of the role and styles of risk management, and performance management/strategic control systems have evolved over time, but it can be argued that risk management is primarily concerned with ensuring the achievement of strategic objectives. This paper shows the extent of overlap between a broad-based view of risk management, namely Enterprise Risk Management (ERM), and the balanced scorecard, which is a widely used strategic control system. A case study of one of the UK's largest retailers, Tesco plc, is used to show how ERM can be introduced as part of an existing strategic control system. The case demonstrates that, despite some differences in lines of communications, the strategic controls and risk controls can be used to achieve a common objective. Adoption of such an integrated approach, however, has implications for the profile of risk and the overall risk culture within an organisation.

Keywords: corporate governance, enterprise risk management, risk controls, strategic control,balanced scorecard, case study, Tesco plc

JEL Classification: L81, M41, G30

Suggested Citation

Woods, Margaret, Linking Risk Management to Strategic Controls: A Case Study of Tesco Plc (February 1, 2008). International Journal of Risk Assessment and Management, Vol. 7, No. 8, pp. 1074-1088, 2008, Available at SSRN: https://ssrn.com/abstract=1358776

Margaret Woods (Contact Author)

Aston Business School ( email )

Aston Business School
Aston Triangle
Birmingham, B4 7ET
United Kingdom

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