Strengthening strategic and financial stability in scientific institutes with implementation of strategic risk management

This study aims to develop a comprehensive Strategic Risk Management (SRM) framework aligned with the COSO ERM for improving strategic and financial performance in Scientific Institutes. Conducted in a nationally significant Serbian institute, the research evaluates SRM's effectiveness in addressing weaknesses, mitigating threats, and leveraging opportunities. A primary SWOT analysis survey, conducted from June 26 to July 1, 2024, involved 214 participants, with a 55.6% response rate (119 respondents). Findings highlight a sustainable business strategy and SRM's effectiveness in mitigating risks across financial, operational, asset-related, and strategic domains. Financial challenges include declining net profit and persistent negative financial results. Despite the decline in business revenues and net profit, effective asset and capital management, supported by previously accumulated reserves, enabled the Institute to maintain financial stability. To address these risks, the study emphasizes cost management, diversification, and investment in innovation to strengthen financial sustainability and competitiveness. This research underscores SRM's pivotal role in building resilience, advancing institutional goals, and enhancing adaptability for scientific institutes with national importance.