Risk management theory that considers an organization-wide approach to risk management is known as what type of approach?

A holistic approach to risk management considers the entire organization as a single, interconnected entity. This perspective, often operationalized through Enterprise Risk Management (ERM) frameworks like ISO 31000, moves away from managing risks in isolated departmental "silos." Instead, it promotes an integrated, organization-wide strategy where risks are identified, assessed, and managed in the context of the organization's overall objectives. This ensures that the interdependencies and aggregate effects of risks across all functions are understood and addressed, providing a complete and unified view of the organization's risk landscape.

A. Cross-functional: This describes a method of working that involves multiple departments, which is a feature of a holistic approach, but not the name of the overarching theory itself.

B. Comprehensive: This is a general adjective meaning "all-encompassing." While a holistic approach is comprehensive, "holistic" is the specific term used in risk management theory for this organization-wide concept.

C. Interrelational: This term focuses on the connections between individual risks. While analyzing interrelationships is a key part of a holistic view, it does not describe the entire organization-wide scope of the approach.

1. Hopkin, P. (2018). Fundamentals of Risk Management: Understanding, Evaluating and Implementing Effective Risk Management (5th ed.). Kogan Page. In Chapter 1, "Introduction to risk management," the text explains the evolution from silo-based risk management to a more "holistic and integrated approach" known as enterprise risk management (ERM), which is central to the philosophy of ISO 31000. (Specifically, see section on "Development of enterprise risk management").

2. Gatzert, N., & Martin, M. (2015). The Impact of Enterprise Risk Management on Firm Performance. Journal of Risk and Financial Management, 8(1), 19-44. The paper defines ERM as "a holistic and integrated approach to manage a firm’s key risks with the aim of maximizing firm value." (Page 20, Section 2.1). https://doi.org/10.3390/jrfm8010019

3. Hoyt, R. E., & Liebenberg, A. P. (2011). The Value of Enterprise Risk Management. The Journal of Risk and Insurance, 78(4), 795–822. The authors describe ERM as a "holistic, portfolio-based view of risk" that contrasts with the traditional, siloed approach to risk management. (Page 796). https://doi.org/10.1111/j.1539-6975.2011.01413.x