How did enterprise risk management first appear in the Korean public sector?

Abstract

This research addresses the rise and fall of the Crisis Management Guideline of Public Organizations (CMGPO) from a historical perspective. In the Korean public sector, as a form of enterprise risk management (ERM), CMGPO is not designed to be merely a tool of financial risk management but also to be a policy tool for crisis management. CMGPO emerged within the conflict between integrated crisis management and dispersed crisis management. The purpose of CMGPO is to bureaucratically integrate the crisis management of public organizations with the governmental crisis management system. ERM as a form of self-regulation is entangled with the pre-existing command and control of the Korean government over integrated crisis management. As a result, CMGPO is characterized as ‘enforced self-regulation’ rather than self-regulation; this is a fundamental idea in ERM.