MEDIATION AS A RISK MANAGEMENT INSTRUMENT REFRAMING ORGANIZATIONAL CONFLICT AS A MISSING STRUCTURAL ELEMENT IN ERM FRAMEWORKS

Abstract

In contemporary organizations, risk is increasingly generated internally rather than imposed externally. Among the most underestimated sources of such internal risk are unresolved conflicts, communication breakdowns, and escalation dynamics within and between stakeholders. This paper advances the argument that mediation should be reframed from a purely legal or alternative dispute resolution (ADR) mechanism into a structured instrument within enterprise risk management (ERM) systems. More specifically, it argues that mediation is a missing structural element in ERM frameworks. By integrating mediation into the risk control architecture, organizations can transform conflict from a destabilizing factor into a managed process. The paper proposes a conceptual model positioning mediation as a distinct risk control layer and explores its implications for organizational resilience, decision-making speed, and value preservation.