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.