Strategic Risk Management and Business Continuity: A Framework for Enhancing Enterprise Risk Governance

Objective: This study aimed to examine the relationship between strategic risk management, business continuity, and enterprise risk governance and to propose an integrated framework for enhancing enterprise risk governance. Methods and Materials: This applied quantitative study was conducted using a descriptive-correlational and cross-sectional survey design. The statistical population consisted of university faculty members, risk managers, members of risk committees, and members of the boards of directors of companies listed on the stock exchange. Since it was anticipated that some questionnaires might not be returned or might not be completed correctly, 390 questionnaires were distributed to ensure access to 384 valid questionnaires. After data collection and screening, 384 questionnaires were confirmed as complete and usable, indicating an approximate return rate of 98%. Data were collected using a structured questionnaire measuring strategic risk management, business continuity, and enterprise risk governance. The questionnaire items were scored on a five-point Likert scale. Data were analyzed using descriptive statistics, Pearson correlation, multiple regression analysis, and structural equation modeling through SPSS and AMOS. Findings: The inferential findings showed significant positive correlations between strategic risk management and business continuity (r = 0.63, p < 0.001), strategic risk management and enterprise risk governance (r = 0.68, p < 0.001), and business continuity and enterprise risk governance (r = 0.71, p < 0.001). Regression analysis indicated that strategic risk management and business continuity significantly predicted enterprise risk governance, F(2, 381) = 296.14, p < 0.001, explaining 61% of its variance. Business continuity had the stronger predictive effect (β = 0.52, p < 0.001) compared with strategic risk management (β = 0.36, p < 0.001). Structural equation modeling confirmed acceptable model fit and showed that strategic risk management significantly affected business continuity (β = 0.64, p < 0.001), strategic risk management directly affected enterprise risk governance (β = 0.32, p < 0.001), and business continuity directly affected enterprise risk governance (β = 0.51, p < 0.001). The indirect effect of strategic risk management on enterprise risk governance through business continuity was also significant (β = 0.33, p < 0.001).