Dual risk reporting: bridging compliance and strategy using institutional and learning theories

Purpose This research explores how organizations in emerging markets address corporate responsibility through dual risk reporting of compliance obligations and internal strategic risk management. By integrating Institutional Theory and Learning Theory, the research examines how regulatory pressures, and organizational learning (“tone from the top”) shape the unique challenges in the Indian insurance sector. Design/methodology/approach Using a qualitative approach, the study draws on interviews with executives from a leading Indian insurance company, supplemented by an in-depth case study. The research applies causal loop analysis to map interdependencies between formal compliance-driven risk reporting and informal strategy-focused governance practices within the organization. Findings The study identifies two key barriers to effective risk reporting; (1) firms frequently adopt a compliance-oriented mindset, viewing risk reporting as a regulatory requirement rather than a strategic function, and (2) weak organizational learning impairs adaptability and undermines the long-term utility of risk reports. Originality/value This study introduces a Practical Dual Risk Reporting Framework that positions dual disclosure as a mechanism of corporate responsibility, enabling firms to respond simultaneously to institutional pressures and internal governance needs. The framework bridges theoretical insights with practical applications, supporting more integrated and accountable risk governance in institutional contexts.