The role of strategic management tools in enterprise risk management: A model proposal and implementation

In the frameworks and guidelines published on enterprise risk management (ERM), it is emphasized that ERM should be integrated with strategic management in line with the changes in management understanding. In particular, the "COSO ERM- Integrating Strategy and Performance" framework published in 2017 sets an example in this regard. However, although the published academic studies and frameworks clearly state "what should happen" in terms of integrating strategic management and risk management, the question of "how it should happen" remains unanswered, and the few studies published on this subject are focused on strategic management. In this respect, this study aims to contribute to the integration of these concepts and to reveal this relationship with a focus on ERM. In the study, it was aimed to determine the place of the relationship between 42 strategic management tools (SMTs), which were determined to contribute the most to organizations as a result of the literature review, and ERM in academic and working life. In an academic context, the place of studies reflecting this relationship in databases within ERM studies was examined. Regarding the existence of this relationship in working life, a survey was conducted for 251 employees working in 35 institutions, organizations and companies from the public, state-owned enterprises, local governments and private sectors, and interviews were conducted with managers representing these sectors. The data obtained in the application results were subjected to reliability and validity analyzes in accordance with quantitative and qualitative methods. For the hypothesis testing of the survey data, Chi-square independence test and Chi-square Post Hoc analysis were performed to determine the variables affecting this result. In the tests, the relationship with the components of ERM was examined first and then the relationship with the integrity of ERM was examined. As a result of the tests, it was determined that the factors of sector, working time, education level and age all had an effect on the relationship between the SMTs and the integrity of the ERM. In the component relationship, it was determined that all of these factors had an effect in three components, and in two components, factors other than working time had an effect. It was observed that the data obtained in the interviews supported the survey test results. On the other hand, it was determined that the academic interest in the SMTs-ERM relationship was not reflected in the working life at the expected level. In the study, as a result of the data obtained from the survey responses, a "ERM Based on Strategic Management Tools" model was proposed. This Model, which reveals the relationship between the ERM process and SMTs, is expected to contribute to the integration and effective operation of strategic management and enterprise risk management processes of organizations with a holistic and practical perspective.