Enterprise risk management: Example of development agencies

Every institution faces various risks en route to realizing its aims and objectives. The main purpose of ERM is to determine and evaluate the events that may face in the future and to ensure the management of such events in accord to the aims and objectives of the institution. Predicting an event, determining the counter measures, reducing its potential negative effects and maximising the positive effects and opportunities are the successes of institution management. ERM is an important management function for institutions and administrators to achieve such success. In this context, Enterprise Risk Management is an important tool for administrators en route to successful public administration, which has transformed from norm and process based approaches to result-based approach.Regional Development Agencies are organized for the purpose of accelerating regional development, ensuring sustainability in accordance with the National Development Plan and Programmes through enhancing the cooperation amongst public sector, private sector and non­governmental organizations, ensuring the efficient and appropriate utilization of resources and stimulating local potential. For Turkish economy, the success of RDA's for realization of missions, visions goals and objectives is very important. Therefore, predetermination and management of events and cases that may have positive or negative influence over RDA's goals and objectives, which means risks, will increase the probability of success of the RDA's. If ERM can be planned and applied in RDA's in an effective way, it will become an important management tool for achieving Agencies' regional development goals and objectives. Hence, academic studies which provide the efficient application of ERM and guidance to RDA's have a strong importance.In the fourth section of the thesis, the theoretical structure of ERM is implemented on a development agency based on the COSO Enterprise Risk Management model. However, the agency refused to allow the agency's name to take part in the thesis , the name of agency coded as "X development agency " . With the design and implementation of ERM on agency, it is tested how ERM can be applied as a function of management in particular in development agencies generally public institutions. Determination of the potential problems can be faced by agencies and public institutions on the design and implementation and develop possible solutions to overcome these problems are aimed.Key Words1.Risk2.Risk Management3.Enterprise Risk Management4.COSO ERM Model5.Development Agency