Implementing Enterprise Risk Management in Swedish Corporations: A Study of Incentives and Obstacles


Summary, in English

In Sweden, a number of companies have started viewing risk management from a holistic
perspective rather than a silo-based one. This holistic approach is referred to as Enterprise Risk
Management (ERM). Research on ERM has mainly focused on the implementation process and
whether it can be value adding for shareholders. This study is designed to look at why companies
decide to implement ERM and what obstacles are faced in the implementation process. Based on
interviews with CROs of 12 Swedish non-financial firms that explicitly claim to have ERM, we
conclude that regulations on corporate governance and improved investment decision making
are the two main drivers of ERM-implementation. We are also able to identify a set of obstacles
including a conflict in who the risk owner is, difficulties to aggregate qualitative and quantitative
risks, inhibited creativity due to ERM and that the character of the implementation is dependent
on the CRO’s background. Further, we suggest that the implementation can be done more
efficient if preceded by a planning and communication phase, and that the implementation
process itself can be value adding by improving internal cooperation and reducing internal


  • Business and Economics


  • Enterprise Risk Management (ERM)
  • Risk Management
  • Implementation
  • Risk Ownership
  • Incentives
  • Obstacles
  • COSO.


  • Niclas Andrén (Associate professor)
  • Sara Lundqvist