Crawford, J. and Jabbour, M. orcid.org/0000-0002-7078-5726 (2024) The relationship between enterprise risk management and managerial judgement in decision-making: a systematic literature review. International Journal of Management Reviews, 26 (1). pp. 110-136. ISSN 1460-8545
Abstract
Enterprise risk management (ERM) promises to improve decision-making and help organizations avoid wicked problems. Consequently, risk artefacts may play a significant role in managers’ decision-making processes, but little is known about the relationship between ERM and managerial judgement in decision-making (MJDM). The purpose of this paper is to present a systematic literature review of ERM, thereby filling this knowledge gap and providing an evidence-based foundation for improving practice and advancing knowledge and theory development. Based on an analysis and synthesis of 33 articles published between 2009 and 2021, we identify four contextual, five technical, three social and five cognitive factors that interact with MJDM. We find that regulation and corporate governance, ERM artefact design reconfiguration and use, social capital interactions and spaces and perceptions have the most support. We distinguish between three different modes of judgement: risk measurement, risk envisionment and risk qualculation. We find that risk qualculation, which employs quantitative and qualitative data and social interpretations of risks and uncertainties, is more likely to be useful in managerial decision-making, particularly when attempting to address wicked problems. We also find that human cognition significantly impacts ERM design, implementation and use, and how those change over time. This paper also develops a new narrative and conceptualization of the relationship between ERM and MJDM, which is presented in an integrative framework. Finally, we encourage researchers to adopt cognitive theories and related concepts that are better suited for examining the ERM–MJDM relationship and to take a cognitive turn in future ERM research.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 The Authors. International Journal of Management Reviews published by British Academy of Management and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License, (http://creativecommons.org/licenses/by-nc/4.0/) which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes. |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 10 May 2023 14:33 |
Last Modified: | 01 Oct 2024 14:20 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/ijmr.12337 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:199011 |