Risk Management Frameworks and the Implementation of Blockchain Technology

Abstract

Blockchain as a technology has potential for improving risk exposure through incorporation with risk management frameworks. There are aspects of the link between the two that facilitate a way of working outside that is possible by all but the very largest corporate entities. The use of enterprise risk management (ERM) frameworks, and in particular ISO31000, has become an increasingly accepted governance standard for companies, and any use of Blockchain technologies needs to integrate with those organisational processes. Doing so should result in practical benefits for most organisations engaging with their exposure to risk in a formalised manner. This chapter outlines risk management frameworks, the ‘dimensions' in which integration with Blockchain may be realised, key benefits, challenges, and future development opportunities. The presently available implementation case studies are discussed throughout the chapter including potential usage in supply chain management, healthcare records, financial management, and corporate governance.