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Analysis on the Key Successful Factors of Enterprise-Wide Risk Management: Based on the Insight of Effective Encouragement

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2 Author(s)
Yue-hu Lin ; Econ. & Manage. Sch., Wuhan Univ., Wuhan, China ; Li-hong Du

This paper has emphasized on the internal factors resulting in the inactive involvement of “people” into the effective enterprise-wide risk management (ERM), and further confirms that the enterprises should take efforts on establishing en effective encouragement mechanism so as to eliminate the negative effects of these key factors and finally help to construct a practical ERM system. Thus, in this paper, managers should recognize that a successful ERM practice means an innovative and controlling process with the active involvement of all the staffs, in which the negative factors, such as “the transference effect of wealth and risk” and “the team work effect”, are hoped to be cleared up. Moreover, this paper has made analysis on how to clear up these factors mainly through application an inspired encouragement mechanism with a payment and reward project and an ERM culture as its “dominant” and “recessive” parts respectively.

Published in:

Management of e-Commerce and e-Government (ICMeCG), 2010 Fourth International Conference on

Date of Conference:

23-24 Oct. 2010

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