Enterprise Risk Management in Slovenian Chemical Industry

Abstract

Enterprise risk management (ERM) is widely accepted as an effective management tool by companies all over the world. The survey centered on the ERM’s use was, in December 2005, carried out among Slovenian medium and large chemical companies. Questionnaires were sent to 41 companies focused on production of chemicals and chemical products (NACE 24). A total of 24 (59 %) completed questionnaires were returned. The results show that only a third of them have an integrated ERM in their business operations. Companies that have implemented at least two standardized management systems (e.g. ISO 9001 and ISO 14001) use ERM as well. The surveyed companies see the most important risks in the field of financial risks, health and safety risks, strategic risks and environmental risks. Majority of the companies have noticed a significant increase in business risks over past three years. They believe that companies should invest more resources in risk management. Almost all surveyed chemical companies have encountered at least one event that could lead to a higher damage in the company. Accidents at work and financial damages are the most frequent event