A SYSTEMIC APPROACH TO RISK MANAGEMENT: COMPARING INTERNATIONAL STANDARDS AND DESIGNING A FUNCTIONAL MODEL FOR ENTERPRISES

Abstract

This article presents a comprehensive comparative analysis of fundamental risk management principles as defined by the internationally recognized standards ISO 31000, COSO Enterprise Risk Management (ERM), and FERMA. The study primarily aims to explore the methodological compatibility and complementarities of these standards within a systemic and integrative approach to enterprise risk management. It seeks to clarify their respective roles and contributions in the development and implementation of a cohesive, integrated risk management framework applicable across diverse types and sizes of enterprises operating in various sectors. The author proposes a detailed functional model that reflects the underlying logic and sequence of constructing, coordinating, and operationalizing risk management processes aligned with these standards and real-world best practices. This model is systematically structured around core elements of the systemic approach, ensuring logical coherence and alignment among foundational principles, procedural workflows, organizational structures, and clearly defined risk management objectives in contemporary business environments. The scientific novelty of the study lies in synthesizing these diverse international frameworks into a unified, adaptable model that enhances organizational flexibility, transparency, and resilience in risk governance amidst evolving internal and external environmental conditions. The practical significance is demonstrated by the model’s potential to assist enterprises in proactively identifying, thoroughly assessing, effectively mitigating, and continuously monitoring risks, thereby improving strategic decision-making, operational efficiency, and long-term sustainability. The article concludes that the systemic integration of international risk management standards plays a vital role in advancing resilient, adaptive, and sustainable enterprise risk governance capable of addressing the complexities of today’s dynamic business landscape, while also supporting regulatory compliance and stakeholder confidence.