Advancing the complex adaptive systems approach to enterprise risk management with quantified risk networks (QRNs).

ABSTRACT: Business enterprises are complex adaptive systems (CAS) subject to fragility caused by the non-linear effects of uncertain risk events. The regional bank collapses in the United States are a case in point. Recent papers have highlighted a shortcoming of the traditional risk management process, which focuses on compliance but considers neither the interdependence between complex risks nor the mechanism of their non-linear impact on the organization. A new perspective on Enterprise Risk Management (ERM) has instead called for a shift of mindset from mitigating risk to building resilience by honing a CAS view to contextualize, assess, and manage complex risks. But the building blocks needed for a CAS representation of ERM have not yet been systematically developed. Specifically, we are missin

SUBMITTER: Sheth A 

PROVIDER: S-EPMC11437040 | biostudies-literature | 2024 Sep

REPOSITORIES: biostudies-literature