Integrating Enterprise Risk Management in Cross-Border Energy: A Multi-Method Approach to Strategic Decision-Making in the Digital and Low-Carbon Era
Jun Wang
Journal of Information Security Research, Vol. 17, No. 1, 2026.
DOI: https://doi.org/10.6025/jisr/2026/17/1/37-48
Link: https://www.dline.info/jisr/fulltext/v17n1/jisrv17n1_3.pdf
Abstract:
The document explores the evolution and strategic importance of Enterprise Risk Management (ERM) in
today's volatile global environment, emphasizing its shift from traditional, siloed risk approaches to an
integrated, enterprise wide framework. ERM is presented not only as a tool for risk mitigation but also as a
driver of value creation, innovation, and resilience particularly in sectors like energy undergoing digital and
low carbon transitions. The integration of ERM with performance management systems, such as the Balanced
Scorecard, is discussed, along with challenges such as professional tensions and difficulties in linking risk to
performance outcomes.
Digitalization emerges as a key enabler of modern ERM, enhancing real time monitoring, predictive analytics,
and stakeholder collaboration especially in complex clean energy projects. Green Financial Innovation
(GFI) is highlighted for its role in reducing technological and market risks while supporting sustainable
financing.
The core of the analysis focuses on cross border M&A in the energy sector and identifies six key risk categories.
Market and integration risks are deemed most critical. Using Fuzzy Risk Assessment and Grey Relational
Analysis, three M&A plans (A, B, C) are evaluated; Plan C consistently ranks as the least risky due to its low
exposure to high weight risks. Sensitivity analysis confirms Plan C's robustness across varying risk weight
scenarios. The study concludes that combining quantitative risk models with qualitative governance practices
strengthens strategic decision making in uncertain, globalized markets.