Proceedings of The 3rd International Conference on Business, Management and Finance
The Role of Enterprise Risk Management (ERM) Using ISO 31000 for the Competitiveness of a Company That Adopts the Value Chain (VC) Model and Life Cycle Cost (LCC) Approach
Dr. F. Antonius Alijoyo and Stefiany Norimarna
This paper discusses a conceptual review on how Enterprise Risk Management (ERM) plays a role in the competitiveness of companies that adopts the Value Chain (VC) model and Life Cycle Cost (LCC) approach. A literature review was conducted over some selected papers. The result shows that ERM is critically and fundamentally required to have an effective VC model and the practice of the LCC approach. Further, some discussions with practitioners in Indonesian listed companies gave a result that affirmed such conceptual review in a practical environment. The results lead to the recommendation that ERM should be a pre-requisite before the value adoption chain model and LCC approach by a company. This paper, however, is without the field research, and therefore, an empirical study is strongly recommended to confirm the conclusion of this conceptual review and to understand the critical key success factors in building or establishing an effective interlink between ERM, VC, and LCC.
Keywords: Value Chain, Life Cycle Cost, Enterprise Risk Management.