Business Cadence: Optimising the role of Enterprise Risk Management

Abstract

<p>The ultimate aim of any business is to succeed: to achieve its chosen objectives, both strategic and tactical. In achieving this aim, leaders and executives of business organisations seek to identify opportunities, understand the potential returns and risks and then make business decisions that bring the identified opportunities to fruition.</p><p> The overall aim in this Professional Doctorate is to demonstrate that innovative approaches can be used to better integrate Enterprise Risk Management outputs into business decision making. The Professional Doctorate is therefore about changing the way Boards and senior management think about, and act on, risk information with the result that the business gains a competitive advantage.</p><p> This Innovation Portfolio sought to develop and implement in a major Australian Life Insurer two innovative tools (Innovation 1 - Bayesian Analysis and Innovation 2 - Gamification) to give the Chief Risk Officer new perspectives to apply to senior executive business decision discussions. The research then sought to develop two further innovations: a new conceptual approach to using the outputs of these two innovations to strengthen the company's competitive position in the market place (Innovation 3) as well as a methodology for using the ERM outputs to influence the decision making timing (Business Cadence) of the company (Innovation 4).</p>