Building Risk-Aware Organizations: A Systematic Literature Review of Organizational Culture, Governance Mechanisms, and Enterprise Risk Management Integration
Keywords:
Risk-Aware Organization, Organizational Culture, Governance Mechanisms, Enterprise Risk Management, Risk Management Integration, Dynamic Capabilities Theory.
Abstract
This study examines the development of risk-aware organizations through a Systematic Literature Review (SLR) approach by analyzing the role of organizational culture, governance mechanisms, and Enterprise Risk Management (ERM) integration. A total of 50 peer-reviewed articles were reviewed based on the PRISMA guidelines to identify research trends related to risk culture, governance practices, ERM implementation, and organizational capabilities in managing uncertainty. The findings indicate that effective risk-aware organizations are built through the integration of strong risk culture, effective governance mechanisms, and strategic ERM implementation. Furthermore, digital transformation and adaptive capabilities enhance organizational ability to identify, evaluate, and respond to emerging risks. However, challenges remain regarding organizational readiness, technology integration, risk communication, and alignment between risk management practices and business strategies. This study contributes to the literature by providing a structured synthesis of previous research and highlighting the importance of integrated risk management capabilities in developing sustainable and adaptive risk-aware organizations.
References
Adam, M., Soliman, A. M., & Mahtab, N. (2023). Measuring enterprise risk management implementation: A multifaceted approach for the banking sector. The Quarterly Review of Economics and Finance, 87, 244–256. https://doi.org/10.1016/j.qref.2021.01.002
Aigner, P. (2025). Identifying scenarios for the own risk and Solvency assessment of insurance companies. Insurance: Mathematics and Economics, 122, 30–43. https://doi.org/10.1016 /j.insmatheco.2025.01.009
Akter, R. (2026). Evolution and emerging frontiers of explainable artificial intelligence (XAI) in financial risk management: A bibliometric analysis. Strategic Business Research, 2, 100118. https://doi.org/10.1016/j.sbr.2026.10 0118
Alfeus, M., Mwampashi, M. M., Nikitopoulos, C. S., & Overbeck, L. (2026). Stochastic modelling and forecasting of wind capacity utilization with applications to risk management: The Australian case. Pacific-Basin Finance Journal. https://doi.org/10.1016/j.pac fin.2026.103310
Andersen, T. J., Sax, J., & Giannozzi, A. (2022). Conjoint effects of interacting strategy-making processes and lines of defense practices in strategic risk management: An empirical study. Long Range Planning, 55(2), 102164. https://doi.org/10.1016/j.lrp.2021.102164
Azeez, F. A., Akhtar, A., & Shah, M. M. (2026). A hybrid FAHP-TOPSIS approach for prioritizing supply chain risk management factors and ranking industry alternatives. Strategic Business Research. https://doi.org/10.1016/j.sbr.2026. 100155
Barbosa, M. W., Martinez Carrasco, S. I., & Rodriguez Abarca, P. C. (2022). The effect of enterprise risk management competencies on students' perceptions of their work readiness. The International Journal of Management Education, 20, 100638. https://doi.org/10.1016/j.ijme.2022.100638
Charles, A., & Darné, O. (2026). Forecasting volatility and risk management in natural gas markets. International Economics, 187, 100714. https://doi.org/ 10.1016/j.inteco. 2026.100714
Cole, C. R., & Eastman, E. M. (2026). Risk management and corporate lifecycles: Evidence from reinsurance purchases. Journal of Corporate Finance, 98, 102961. https://doi.org/10.10 16/j.jcorpfin.2026.102961
Cornwell, N., Bilson, C., Gepp, A., Stern, S., & Vanstone, B. J. (2023). Modernizing operational risk management in financial institutions via data-driven causal factors analysis: A pre-registered report. Pacific-Basin Finance Journal, 77, 101906. https://doi.org/10.10 16/j.pacfin.2022.101906
Cornwell, N., Bilson, C., Gepp, A., Stern, S., & Vanstone, B. J. (2023). Modernizing operational risk management in financial institutions via data-driven causal factors analysis: A pre-registered study. Pacific-Basin Finance Journal, 79, 102011. https://doi.org/10.1016 /j.pacfin.2023.102011
Dal Maso, L., Jia, X., & Kanagaretnam, K. (2026). Climate beliefs, attitudes, and bank risk management. Journal of Banking & Finance, 185, 107652. https://doi.org/10.1016 /j.jbankfin.2026.107652
Díaz-Aldret, A., & Becerril, H. (2026). More-than-human governance: Beyond top-down and bottom-up logics in disaster risk management. Cities, 178, 107313. https://doi.org/10.1016/j.cities.2026.107313
Dionne, G., El Hraiki, R., & Mnasri, M. (2023). Determinants and real effects of joint hedging: An empirical analysis of US oil and gas producers. Energy Economics, 124, 106801. https://doi.org/10.1016/j.eneco.2023.106801
Dong, H., Zhong, X., & Zou, S. (2026). Ex-ante defense: Enterprise risk management and supply chain integration. Finance Research Letters, 101, 109963. https://doi.org/10.1016 /j.frl.2026.109963
Erkan-Barlow, A., & Nguyen, T. (2024). Cybersecurity and executive compensation: Can inside debt-induced risk aversion improve cyber risk management effectiveness? International Review of Financial Analysis, 93, 103173. https://doi.org/10.1016/j.irfa.2024.103173
Fung, D. W. H., Lee, W. Y., & Yang, C. C. (2025). Surviving the storm: Evaluating the role of enterprise risk management in property and liability insurers' performance during the COVID-19 pandemic. Journal of Corporate Finance, 91, 102751. https://doi.org/10.10 16/j.jcorpfin.2025.102751
Fraser, J. R. S., Quail, R., & Simkins, B. J. (2022). Questions asked about enterprise risk management by risk practitioners. Business Horizons, 65, 251–260. https://doi.org/10.10 16/j.bushor.2021.02.046
Gao, C., & Zhang, S. (2025). ESG performance and corporate financialization: A dual perspective of risk management and value creation. Finance Research Letters, 71, 106442. https://doi.org/10.1016/j.frl.2024.106442
Gavious, I., Milo, O., & Fenigstein, T. (2026). Chronicles of risk management practices in EU banks: A cross-country analysis. Finance Research Letters, 91, 109426. https://doi.org/10. 1016/j.frl.2025.109426
Giannozzi, A., & Kirilova, A. (2026). When corporate risk management amplifies risks: Evidence from Europe's energy crisis in 2022. Journal of Banking & Finance, 188, 107700. https://doi.org/10.1016/j.jbankfin.2026.107700
Guo, J., He, J., Ren, Y., & Zhang, Y. (2026). Digital transformation and climate transition risk management: Evidence from Chinese listed firms. China Economic Review, 99, 102732. https://doi.org/10.1016/j.chieco.2026.102732
Guo, X., Guo, K., & Wang, S. (2026). The Crypto Risk Composite Index (CCRI)-advancing risk management in the digital asset space. International Review of Financial Analysis, 113, 105136. https://doi.org/10.1016/j.irfa.2026.105136
Guo, Y., Ge, H., Liao, Z., Hu, Y., & Huang, B. (2024). The influence of financial innovation on enterprise risk management. Finance Research Letters, 62, 105098. https://doi.org/10. 1016/j.frl.2024.105098
Han, X., & Laing, E. (2025). Enterprise risk management and foreign currency derivatives usage. International Review of Economics and Finance, 103, 104518. https://doi.org/10. 1016/j.iref.2025.104518
He, Y., & Lin, C. (2025). Dynamic impact of media coverage on corporate risk management: Moderating effect of environmental policies and heterogeneity analysis. International Review of Economics and Finance, 100, 104109. https://doi.org/10. 1016/j.iref.2025.104109
Huber, C., Kraus, K., & Meidell, A. (2025). Integrating the balanced scorecard and enterprise risk management: Exploring the dynamics between management control anchor practices and subsidiary practices. Management Accounting Research, 66, 100924. https://doi.org/10. 1016/j.mar.2024.100924
Kugele, A. S. H., & Sarkar, B. (2026). Advanced risk management for a business-to-business and business-to-consumer service supply chain under information asymmetry with Stackelberg game. Journal of Industrial Information Integration. https://doi.org/10.1016/j.jii.2026.101168
Kuo, Y. F., Lin, Y. M., & Chien, H. F. (2021). Corporate social responsibility, enterprise risk management, and real earnings management: Evidence from managerial confidence. Finance Research Letters, 41, 101805. https://doi.org/10.1016/j.frl.2020.101805
Lee, I. (2021). Cybersecurity: Risk management framework and investment cost analysis. Business Horizons, 64, 659–671. https://doi.org/10.1016/j.bushor. 2021.02.022
Li, X., & Shiu, Y. M. (2026). Effect of risk management through reinsurance in estimating the target capital structure. International Review of Economics and Finance, 109, 105400. https://doi.org/10.1016/j.iref.2026.105400
Mohamed, M. A. H., Al-Mhdawi, M. K. S., Ojiako, U., Qazi, A., Mahammedi, C., & Dacre, N. (2026). A GenAI-driven risk management framework for sustainable development projects. Project Leadership and Society, 7, 100217. https://doi.org/10.10 16/j.plas.2026.100217
Peng, Y., & Jin, H. (2025). Effects of information and technology application in audits and digital economy on enterprise risk management level. Finance Research Letters, 73, 106593. https://doi.org/10.1016/j.frl.2024.106593
Reilley, J. T., & Klein, V. H. Jr. (2026). Pathways to accounting mediation: A case study on the role of checklists in risk management. Management Accounting Research, 68, 100964. https://doi.org/10.1016/j.mar.2026.100964
Ringgaard, A., Bukh, P. N., & Sandalgaard, N. (2026). Accounting for the future: A case study of how Probability of Default mediates between calculative practices in risk management. Management Accounting Research, 69, 100965. https://doi.org/10.10 16/j.mar.2026.100965
Sahoo, S., Kumar, A., Mangla, S. K., & Emrouznejad, A. (2026). Enhancing supply chain resilience through digital twin-enabled risk management: The role of logistic service coordination and distribution network efficiency. International Journal of Production Economics, 297, 110016. https://doi.org/ 10.1016/j.ijpe.2026.110016
Sufi, F., & Islam, S. (2026). From risk to resilience: Empirical validation of a multidimensional entrepreneurial risk management model in developing markets. Strategic Business Research, 2, 100206. https://doi.org/10.1016/ J.SBR.2026.100206
Wang, L., & Yang, Y. (2026). Digital intelligence transformation, financial innovation, and the effectiveness of enterprise risk management. International Review of Financial Analysis, 110, 104865. https://doi.org/10 .1016/j.irfa.2025.104865
Xuan, Y., You, L., & Song, K. (2026). Financial amplification, leased capital, and risk management. Journal of Corporate Finance, 100, 103029. https://doi.org/10.10 16/j.jcorpfin.2026.103029
Zhu, D., Li, Z., & Mishra, A. R. (2023). Evaluation of the critical success factors of dynamic enterprise risk management in manufacturing SMEs using an integrated fuzzy decision-making model. Technological Forecasting and Social Change, 186, 122137. https://doi.org/10.1016/j.techfore.2022.122137
Zhu, F., & Shneor, R. (2026). Credit risk management in peer-to-peer lending platforms: A systematic literature review. Technological Forecasting and Social Change, 232, 124831. https://doi.org/10.1016/j.techfore.2026.124831
Aigner, P. (2025). Identifying scenarios for the own risk and Solvency assessment of insurance companies. Insurance: Mathematics and Economics, 122, 30–43. https://doi.org/10.1016 /j.insmatheco.2025.01.009
Akter, R. (2026). Evolution and emerging frontiers of explainable artificial intelligence (XAI) in financial risk management: A bibliometric analysis. Strategic Business Research, 2, 100118. https://doi.org/10.1016/j.sbr.2026.10 0118
Alfeus, M., Mwampashi, M. M., Nikitopoulos, C. S., & Overbeck, L. (2026). Stochastic modelling and forecasting of wind capacity utilization with applications to risk management: The Australian case. Pacific-Basin Finance Journal. https://doi.org/10.1016/j.pac fin.2026.103310
Andersen, T. J., Sax, J., & Giannozzi, A. (2022). Conjoint effects of interacting strategy-making processes and lines of defense practices in strategic risk management: An empirical study. Long Range Planning, 55(2), 102164. https://doi.org/10.1016/j.lrp.2021.102164
Azeez, F. A., Akhtar, A., & Shah, M. M. (2026). A hybrid FAHP-TOPSIS approach for prioritizing supply chain risk management factors and ranking industry alternatives. Strategic Business Research. https://doi.org/10.1016/j.sbr.2026. 100155
Barbosa, M. W., Martinez Carrasco, S. I., & Rodriguez Abarca, P. C. (2022). The effect of enterprise risk management competencies on students' perceptions of their work readiness. The International Journal of Management Education, 20, 100638. https://doi.org/10.1016/j.ijme.2022.100638
Charles, A., & Darné, O. (2026). Forecasting volatility and risk management in natural gas markets. International Economics, 187, 100714. https://doi.org/ 10.1016/j.inteco. 2026.100714
Cole, C. R., & Eastman, E. M. (2026). Risk management and corporate lifecycles: Evidence from reinsurance purchases. Journal of Corporate Finance, 98, 102961. https://doi.org/10.10 16/j.jcorpfin.2026.102961
Cornwell, N., Bilson, C., Gepp, A., Stern, S., & Vanstone, B. J. (2023). Modernizing operational risk management in financial institutions via data-driven causal factors analysis: A pre-registered report. Pacific-Basin Finance Journal, 77, 101906. https://doi.org/10.10 16/j.pacfin.2022.101906
Cornwell, N., Bilson, C., Gepp, A., Stern, S., & Vanstone, B. J. (2023). Modernizing operational risk management in financial institutions via data-driven causal factors analysis: A pre-registered study. Pacific-Basin Finance Journal, 79, 102011. https://doi.org/10.1016 /j.pacfin.2023.102011
Dal Maso, L., Jia, X., & Kanagaretnam, K. (2026). Climate beliefs, attitudes, and bank risk management. Journal of Banking & Finance, 185, 107652. https://doi.org/10.1016 /j.jbankfin.2026.107652
Díaz-Aldret, A., & Becerril, H. (2026). More-than-human governance: Beyond top-down and bottom-up logics in disaster risk management. Cities, 178, 107313. https://doi.org/10.1016/j.cities.2026.107313
Dionne, G., El Hraiki, R., & Mnasri, M. (2023). Determinants and real effects of joint hedging: An empirical analysis of US oil and gas producers. Energy Economics, 124, 106801. https://doi.org/10.1016/j.eneco.2023.106801
Dong, H., Zhong, X., & Zou, S. (2026). Ex-ante defense: Enterprise risk management and supply chain integration. Finance Research Letters, 101, 109963. https://doi.org/10.1016 /j.frl.2026.109963
Erkan-Barlow, A., & Nguyen, T. (2024). Cybersecurity and executive compensation: Can inside debt-induced risk aversion improve cyber risk management effectiveness? International Review of Financial Analysis, 93, 103173. https://doi.org/10.1016/j.irfa.2024.103173
Fung, D. W. H., Lee, W. Y., & Yang, C. C. (2025). Surviving the storm: Evaluating the role of enterprise risk management in property and liability insurers' performance during the COVID-19 pandemic. Journal of Corporate Finance, 91, 102751. https://doi.org/10.10 16/j.jcorpfin.2025.102751
Fraser, J. R. S., Quail, R., & Simkins, B. J. (2022). Questions asked about enterprise risk management by risk practitioners. Business Horizons, 65, 251–260. https://doi.org/10.10 16/j.bushor.2021.02.046
Gao, C., & Zhang, S. (2025). ESG performance and corporate financialization: A dual perspective of risk management and value creation. Finance Research Letters, 71, 106442. https://doi.org/10.1016/j.frl.2024.106442
Gavious, I., Milo, O., & Fenigstein, T. (2026). Chronicles of risk management practices in EU banks: A cross-country analysis. Finance Research Letters, 91, 109426. https://doi.org/10. 1016/j.frl.2025.109426
Giannozzi, A., & Kirilova, A. (2026). When corporate risk management amplifies risks: Evidence from Europe's energy crisis in 2022. Journal of Banking & Finance, 188, 107700. https://doi.org/10.1016/j.jbankfin.2026.107700
Guo, J., He, J., Ren, Y., & Zhang, Y. (2026). Digital transformation and climate transition risk management: Evidence from Chinese listed firms. China Economic Review, 99, 102732. https://doi.org/10.1016/j.chieco.2026.102732
Guo, X., Guo, K., & Wang, S. (2026). The Crypto Risk Composite Index (CCRI)-advancing risk management in the digital asset space. International Review of Financial Analysis, 113, 105136. https://doi.org/10.1016/j.irfa.2026.105136
Guo, Y., Ge, H., Liao, Z., Hu, Y., & Huang, B. (2024). The influence of financial innovation on enterprise risk management. Finance Research Letters, 62, 105098. https://doi.org/10. 1016/j.frl.2024.105098
Han, X., & Laing, E. (2025). Enterprise risk management and foreign currency derivatives usage. International Review of Economics and Finance, 103, 104518. https://doi.org/10. 1016/j.iref.2025.104518
He, Y., & Lin, C. (2025). Dynamic impact of media coverage on corporate risk management: Moderating effect of environmental policies and heterogeneity analysis. International Review of Economics and Finance, 100, 104109. https://doi.org/10. 1016/j.iref.2025.104109
Huber, C., Kraus, K., & Meidell, A. (2025). Integrating the balanced scorecard and enterprise risk management: Exploring the dynamics between management control anchor practices and subsidiary practices. Management Accounting Research, 66, 100924. https://doi.org/10. 1016/j.mar.2024.100924
Kugele, A. S. H., & Sarkar, B. (2026). Advanced risk management for a business-to-business and business-to-consumer service supply chain under information asymmetry with Stackelberg game. Journal of Industrial Information Integration. https://doi.org/10.1016/j.jii.2026.101168
Kuo, Y. F., Lin, Y. M., & Chien, H. F. (2021). Corporate social responsibility, enterprise risk management, and real earnings management: Evidence from managerial confidence. Finance Research Letters, 41, 101805. https://doi.org/10.1016/j.frl.2020.101805
Lee, I. (2021). Cybersecurity: Risk management framework and investment cost analysis. Business Horizons, 64, 659–671. https://doi.org/10.1016/j.bushor. 2021.02.022
Li, X., & Shiu, Y. M. (2026). Effect of risk management through reinsurance in estimating the target capital structure. International Review of Economics and Finance, 109, 105400. https://doi.org/10.1016/j.iref.2026.105400
Mohamed, M. A. H., Al-Mhdawi, M. K. S., Ojiako, U., Qazi, A., Mahammedi, C., & Dacre, N. (2026). A GenAI-driven risk management framework for sustainable development projects. Project Leadership and Society, 7, 100217. https://doi.org/10.10 16/j.plas.2026.100217
Peng, Y., & Jin, H. (2025). Effects of information and technology application in audits and digital economy on enterprise risk management level. Finance Research Letters, 73, 106593. https://doi.org/10.1016/j.frl.2024.106593
Reilley, J. T., & Klein, V. H. Jr. (2026). Pathways to accounting mediation: A case study on the role of checklists in risk management. Management Accounting Research, 68, 100964. https://doi.org/10.1016/j.mar.2026.100964
Ringgaard, A., Bukh, P. N., & Sandalgaard, N. (2026). Accounting for the future: A case study of how Probability of Default mediates between calculative practices in risk management. Management Accounting Research, 69, 100965. https://doi.org/10.10 16/j.mar.2026.100965
Sahoo, S., Kumar, A., Mangla, S. K., & Emrouznejad, A. (2026). Enhancing supply chain resilience through digital twin-enabled risk management: The role of logistic service coordination and distribution network efficiency. International Journal of Production Economics, 297, 110016. https://doi.org/ 10.1016/j.ijpe.2026.110016
Sufi, F., & Islam, S. (2026). From risk to resilience: Empirical validation of a multidimensional entrepreneurial risk management model in developing markets. Strategic Business Research, 2, 100206. https://doi.org/10.1016/ J.SBR.2026.100206
Wang, L., & Yang, Y. (2026). Digital intelligence transformation, financial innovation, and the effectiveness of enterprise risk management. International Review of Financial Analysis, 110, 104865. https://doi.org/10 .1016/j.irfa.2025.104865
Xuan, Y., You, L., & Song, K. (2026). Financial amplification, leased capital, and risk management. Journal of Corporate Finance, 100, 103029. https://doi.org/10.10 16/j.jcorpfin.2026.103029
Zhu, D., Li, Z., & Mishra, A. R. (2023). Evaluation of the critical success factors of dynamic enterprise risk management in manufacturing SMEs using an integrated fuzzy decision-making model. Technological Forecasting and Social Change, 186, 122137. https://doi.org/10.1016/j.techfore.2022.122137
Zhu, F., & Shneor, R. (2026). Credit risk management in peer-to-peer lending platforms: A systematic literature review. Technological Forecasting and Social Change, 232, 124831. https://doi.org/10.1016/j.techfore.2026.124831
Published
2026-09-05
How to Cite
Sianturi, A., Permadi, M. A., Hidayat, R., Sari, R., Saftiana, Y., & Isnurhadi. (2026). Building Risk-Aware Organizations: A Systematic Literature Review of Organizational Culture, Governance Mechanisms, and Enterprise Risk Management Integration. International Journal of Education, Vocational and Social Science , 5(04), 305-328. https://doi.org/10.63922/ijevss.v5i04.6425
Contact Person +6282139474255
Email : ijevss@citakonsultindo.or.id / editor.ijevss@gmail.com
