Enterprise risk managemnet in non-financial firms and an application of risk matrix

Globally advanced and integrated financial markets complicated by derivative products and speculative movements, audit scandals, frequent regional distresses and terrorist attacks triggered by uprising disparity in income distribution, large-scale uncertainties and natural disasters caused by climate change amplified the importance of risk management. In this respect, primary implementation of risk adjusted management appeared under Total Quality Control, then evaluated through corporate governance principles to integrated corporate risk management. Under the leadership of developed countries, spreading over legal developments and regulations in this area are pushing the reel sector companies to apply integrated risk management. In Turkey, even though the corporate sector is very dynamic, the firms are struggling to apply corporate risk management, as well as to create integrated risk management. In this thesis, after giving information about enterprise risk management and legal regulations in Turkey, we analyzed corporate risk management applications of a firm acting in industrial and retail sectors which has been growing significantly in recent decade. In the light of the questionnaire and internal corporate risk management documents, the company's corporate risk management practices including the company's vision, strategic and operational objectives, risk appetite and risk tolerance evaluated in the form of risk matrix. We found out that, the firm apply risk management throughout internal audit department. Furthermore the firm has a basic risk management implementation lacking an integrated risk management culture. In order to achieve its ambitious strategic aims, the firm should adopt more institutional management skills with an apparent emphasis on integrated risk management.