Process Approach to Enterprise Risk Management

Recently, special attention is directed to the Enterprise Risk Management (ERM), as a new risk management approach, aiming to provide organizations with an integrated management strategy to deal with their risks. The construction industry is a field in which the involved companies perform certain and consecutive sets of activities via various units. In all organizations, desired results with greater efficiency and effectiveness are achieved only when their activities are managed altogether as an integrated process. As a result, the application of a process approach can be very helpful for the implementation of ERM. This study sets out to identify the advantages of using a process approach in ERM. Hence, the need for using a process approach for the implementation of ERM is discussed through reviewing the relevant literature and it is argued that the application of a process approach can improve critical success factors of ERM including identification and analysis of risks, response to risks, transparency in ERM ownership, responsibility of ERM implementation, development of a risk management information system, capability of measuring risk management outcomes, integration of risks exist in different units, reduction of financial losses, and improvement of business performance.