By the Numbers: Individual Bias and Enterprise Risk Management

Journal of Behavioral and Applied Management, 13(1), 5-23 (2011)

Posted: 15 Oct 2014

See all articles by Eileen Zalkin Taylor

Eileen Zalkin Taylor

North Carolina State University

Jennifer Blaskovich

University of Nebraska at Omaha

Date Written: September 1, 2011

Abstract

In theory, enterprise risk management (ERM) appears to be a succinct and effective risk management model. In practice, as is the case with most managerial techniques, the devil is in the implementation. This study explores this issue by examining how the composition of ERM groups determines which risks are managed and which risks are ignored. In two experiments, we find that groups with accounting or financial backgrounds place greater emphasis on financial risks compared with cross-functional groups. Results suggest that organizations will achieve different ERM outcomes from using cross-functional groups than financially oriented group.

Keywords: ERM, Risk Management

Suggested Citation

Taylor, Eileen Zalkin and Blaskovich, Jennifer, By the Numbers: Individual Bias and Enterprise Risk Management (September 1, 2011). Journal of Behavioral and Applied Management, 13(1), 5-23 (2011). Available at SSRN: https://ssrn.com/abstract=2504164

Eileen Zalkin Taylor (Contact Author)

North Carolina State University ( email )

Campus Box 8113
Nelson Hall
Raleigh, NC 27695-8113
United States
919-513-2476 (Phone)

Jennifer Blaskovich

University of Nebraska at Omaha ( email )

6001 Dodge Street
Omaha, NE 68182
United States

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