Practioners need to understand how different individuals and groups within organization define risk, potential biases in risk assessment, and challenges in implementing risk management initiatives. These challenges offer opportunities for firms to look internally at these issues, and collaborate with scholars to produce engaged scholarships. Studies are yet to demonstrate consistent benefits from ERM. Recent history also raises doubt about the effectiveness of risk management as previously practiced. In the economic downturn caused by the subprime crisis in 2008, the most sophisticated practioners of risk management, suffered most heavily, causing tremendous damage to the US and international economies. Overall, ERM offers a new domain for management scholarships where management scholars can find interesting and theoretically important questions that also have important implications for practice. - ''Failure of high profile ERM adaptors during 2008 financial crisis''- ''Academic research is still in its infnacy''- ''What is ERM and how can management research inform ERM theory and practice?- ''ERM is a contingency of the organization''1. ERM assumes managing a risk PORTFOLIO2. ERM includes operational AND strategic risks3. ERM can be a source of competitive advantage6D: Hybridized professional groups and institutional work: COSO and the rise of ERM (Hayne)Abstract: the rise of risk management represents one of the major organizational shifts of the past decade. This article examines the emergence and diffusion of ERM. Drawing on a range of interviews with key stakeholders and an analysis of secondary materials, we find evidence of numerous forms of institutional work including theorizing, rhetorical appeals, mythologizing, constructing normative networks and educating. As a large, multi-faceted hybridized professional group, COSO was able to bridge conventional diffusion categories of disruption, creation and maintenance. In this paper, there is an explanation why COSO became a strong institution. COSO could reached this by execute three elementary steps:1. Disruptor
2. Creator3. Maintainer1. COSO as a disruptorFor COSO, an important forerunner to its ERM-IF was its IC-IF. Depicted in figure 2, this framework emerged from the COSO sponsored Treadway report. Its adaption dramatically increased in 2002 when the SOX was enacted in response to a series of significant corporate and accounting scandals. SOX, mandated organizations to enhance their controls and consequently brought COSO's IC-IF to the fore in the frenzy to address SOX requirements.- The absence of implementation guidance and clear allocations of responsibility, as well as, the imperative of an enterprise-wide approach. - So in a way, the COSO internal control framework was a rudimentary (primitief) risk management framework.