LG엔시스의 ERM 도입 및 활용 사례

This research examines the issues identified during the implementation of Enterprise Risk Management (ERM) in LG Nsys. Addressing these issues, it suggests a future direction of improvement. Since its introduction in 2005, LG Nsys’ ERM has located diverse risk components, identified their causes, and helped the company take appropriate preventive actions against them. Moreover, the company’s integration of Key Performance Indicators (KPIs) into ERM discovers a way of strategic utilization of an ERM system beyond its simple risk management functionality. For company-wide spread of the risk management practice, this research also suggests remedies to root causes of the identified risk components. The remedies include (1) continuous monitoring on Key Risk Indicators (KRIs), and (2) business process reengineering. In particular, this research makes the following suggestions for improvement in the company’s ERM. First, management efforts should be focused on a few key risk components rather than dispersed to wide range of risk components. Second, the list of key risk components should be updated on a continuous basis quickly responding to circumstantial changes which are highly likely especially in IT industry. Third, a successful incorporation of risk management into organizational culture requires top management’s continuous interest and initiative. Fourth, continuous and active communication about risk management issues should be in place among internal and external stakeholders.