Abstract
This article takes the perspective that risk knowledge and the activities related to RM practice can benefit from the implementation of KM processes and systems, to produce a better enterprise wide implementation of risk management. Both in the information systems discipline and elsewhere, there has been a trend towards greater integration and consolidation in the management of organizations. Some examples of this are: Enterprise Resource Planning (Stevens, 2003), Enterprise Architecture (Zachmann, 1996) and Enterprise Content Management (Smith & McKeen, 2003). Similarly, risk management is evolving into Enterprise Risk Management. KM’s importance in breaking down silos within an organization can help it to do so.
Key Terms in this Chapter
Knowledge Management System: A combination of people, processes and technology whose purpose is to perform knowledge management in an organization. (Edwards, 2009)
Enterprise Risk: A holistic view of risk across the organization. (Dickinson, 2001)
Risk Management: The overall process that a financial institution follows to define a business strategy to identify the risks to which it is exposed, to quantify those risks and to understand and control the nature of the risks it faces. (Cumming & Hirtle, 2001) A specific application of knowledge in order to control deviations from strategic objectives, shareholders’ values and stakeholders’ relationships.
Knowledge Management Processes: The ways in which an organization implements the activities that form part of knowledge management.
Enterprise Risk Management: A systematic and integrated approach to the management of the total risks that a company faces. (Dickinson, 2001)
Knowledge Management: Supporting and achieving the creation, sharing, retention, refinement, and use of knowledge (generally in an organizational context). (Edwards, 2009)