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The association between strategic cost management and enterprise risk management: a critical literature review

Journal Article


Abstract


  • Reviewing literature and application of strategic cost management (SCM) and enterprise risk

    management (ERM) are critical and significant for corporate management to facilitate top

    management to employ appropriate SCM and ERM processes and systems especially in occurrence of

    constant and regular business turn around, crises and turbulence in recent time in world of business.

    This paper revisits and reviews the association between strategic cost management and enterprise risk

    management. Based on this review, the following propositions were developed; firm, which adopted

    SCM, is more likely to adopt ERM approach, there is a positive relationship between audit type and the

    association between ERM and SCM, and there is a positive relationship between company size and the

    association between ERM and SCM. The association between ERM and SCM differs from industry to

    another. The study also develops a framework for SCM composes of the following items: SWOT

    analysis, benchmarking, competitive advantage, value chain analysis, implement strategy that reduce

    cost during the value chain analysis by using target costing, accounting based-costing, accounting

    based-management, just in time, total quality management, life cycle, theory of constraints, and

    measure performance by using balanced scorecard.

UOW Authors


Publication Date


  • 2011

Citation


  • Elsayed, M., Wickramasinghe, A. & Razik, M. A. (2011). The association between strategic cost management and enterprise risk management: a critical literature review. Corporate Ownership and Control, 9 (1), 184-195.

Scopus Eid


  • 2-s2.0-84897129846

Ro Metadata Url


  • http://ro.uow.edu.au/gsbpapers/359

Number Of Pages


  • 11

Start Page


  • 184

End Page


  • 195

Volume


  • 9

Issue


  • 1

Abstract


  • Reviewing literature and application of strategic cost management (SCM) and enterprise risk

    management (ERM) are critical and significant for corporate management to facilitate top

    management to employ appropriate SCM and ERM processes and systems especially in occurrence of

    constant and regular business turn around, crises and turbulence in recent time in world of business.

    This paper revisits and reviews the association between strategic cost management and enterprise risk

    management. Based on this review, the following propositions were developed; firm, which adopted

    SCM, is more likely to adopt ERM approach, there is a positive relationship between audit type and the

    association between ERM and SCM, and there is a positive relationship between company size and the

    association between ERM and SCM. The association between ERM and SCM differs from industry to

    another. The study also develops a framework for SCM composes of the following items: SWOT

    analysis, benchmarking, competitive advantage, value chain analysis, implement strategy that reduce

    cost during the value chain analysis by using target costing, accounting based-costing, accounting

    based-management, just in time, total quality management, life cycle, theory of constraints, and

    measure performance by using balanced scorecard.

UOW Authors


Publication Date


  • 2011

Citation


  • Elsayed, M., Wickramasinghe, A. & Razik, M. A. (2011). The association between strategic cost management and enterprise risk management: a critical literature review. Corporate Ownership and Control, 9 (1), 184-195.

Scopus Eid


  • 2-s2.0-84897129846

Ro Metadata Url


  • http://ro.uow.edu.au/gsbpapers/359

Number Of Pages


  • 11

Start Page


  • 184

End Page


  • 195

Volume


  • 9

Issue


  • 1