Scoping the field of Enterprise Risk Management - and implementing it at Kraftringen AB

Abstract: Enterprise Risk Management is implemented in various sectors and context. What is really know about ERM and how has the concept progressed parallel to risk research in general? This master thesis investigates some general aspects of ERM and what specific aspects of risk management research is present in current scientific literature. The thesis will consist of a scoping study and a practical implementation at the utility company Kraftringen. Based on the results from the scoping study, results will be used to enhance the implementation at Kraftringen. Some of the most important results were: Ambiguity in terms of implementation, lack of detail, duality of holism, incoherence about uncertainties, importance of communication, lack of dealing with black swan events, lack of questioning of background knowledge and lack of achieving resilience. The recommendations to Kraftringen were: Complement the ERM model with appropriate “hybrid model” to make ERM more sensitive to organizational context, the importance of being value-centric, shaping of communication channels, increase awareness of uncertainties and black swan events, reap the benefits from single- and double loop learning.