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Integrating Transfer Pricing Analytics with Enterprise Risk Management: A Multinational Value-Chain Governance Framework
Subject area: Management and Commerce · Area of research: Transfer Pricing and Risk Management
Abstract
The increasing complexity of multinational enterprises (MNEs) and their globalized operations has amplified the importance of both transfer pricing (TP) governance and enterprise risk management (ERM). While transfer pricing has traditionally been a compliance and tax optimization exercise, recent shifts in global regulatory frameworks, including the OECD?s Base Erosion and Profit Shifting (BEPS) initiatives, have transformed it into a strategic tool for multinational value-chain governance. At the same time, enterprise risk management frameworks are becoming essential to address interconnected risks in financial, operational, reputational, and regulatory domains. This paper proposes an integrated governance framework that leverages transfer pricing analytics as a critical data-driven component of enterprise risk management. By conducting an extensive literature review and conceptual synthesis, the study highlights how TP analytics can enhance ERM through improved transparency, predictive modeling, and alignment of intercompany pricing with organizational risk profiles. The findings suggest that integrating TP with ERM not only reduces regulatory and reputational exposure but also creates a governance mechanism that supports sustainable value creation across multinational value chains.
Keywords
Transfer Pricing Analytics, Enterprise Risk Management, Multinational Governance, Value-Chain Optimization, BEPS Compliance, Financial Risk Integration
How to cite this paper
@article{1711011,
author = {Ogochukwu Prisca Onyelucheya, Omoize Fatimetu Dako, Akindamola Samuel Akinola, Olaolu Samuel Adesanya},
title = {Integrating Transfer Pricing Analytics with Enterprise Risk Management: A Multinational Value-Chain Governance Framework},
journal = {Iconic Research And Engineering Journals},
year = {2018},
volume = {1},
number = {12},
pages = {85-101},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1711011.pdf},
abstract = {The increasing complexity of multinational enterprises (MNEs) and their globalized operations has amplified the importance of both transfer pricing (TP) governance and enterprise risk management (ERM). While transfer pricing has traditionally been a compliance and tax optimization exercise, recent shifts in global regulatory frameworks, including the OECD?s Base Erosion and Profit Shifting (BEPS) initiatives, have transformed it into a strategic tool for multinational value-chain governance. At the same time, enterprise risk management frameworks are becoming essential to address interconnected risks in financial, operational, reputational, and regulatory domains. This paper proposes an integrated governance framework that leverages transfer pricing analytics as a critical data-driven component of enterprise risk management. By conducting an extensive literature review and conceptual synthesis, the study highlights how TP analytics can enhance ERM through improved transparency, predictive modeling, and alignment of intercompany pricing with organizational risk profiles. The findings suggest that integrating TP with ERM not only reduces regulatory and reputational exposure but also creates a governance mechanism that supports sustainable value creation across multinational value chains.},
keywords = {Transfer Pricing Analytics, Enterprise Risk Management, Multinational Governance, Value-Chain Optimization, BEPS Compliance, Financial Risk Integration},
month = {June},
}