Systemic Risk Management and Stakeholder Engagement: Insights From Business <scp>CSR</scp> Disclosure

ABSTRACT This study investigates corporate strategies for integrating non‐financial risks and stakeholder engagement into business management frameworks. Our inquiry analyzes the extent to which companies explicitly or implicitly incorporate stakeholder perspectives into their risk management practices. Based on the four fundamental pillars of risk management outlined by the Institute of Risk Management (IRM 2002), this study seeks to elucidate the multidimensional and comprehensive nature of stakeholder engagement in risk management processes. This study is based on a content analysis of 253 sustainability reports and Non‐Financial Statements drawn from different categories of companies representing the Italian market: large companies, small and medium‐sized enterprises (SMEs), cooperatives, and public utilities. The results reveal that companies primarily address risk management and control in their reports, aligning with the literature. Although risk components are equally important in managing adverse events, the results show a high percentage of risk analysis unlike what emerged from the literature, and a smaller percentage of companies focused on risk monitoring and risk communication. Stakeholder engagement levels vary based on company type and the activities performed in the risk governance process. From a theoretical perspective, this study contributes to systemic risk management research by integrating stakeholders into risk governance models. From a managerial perspective, this study offers implications for both risk management and sustainability disclosure practices. Limitations include the sample of Italian companies only and the different publication years of the collected reports.