The Relationship between Corporate Strategy and Enterprise Risk Management: Evidence from Canada

Walid Ben-Amar, Ameur Boujenoui, Daniel Zéghal


In a context of high competition and economic turmoil, companies are faced with a whole array of financial, strategic and operational risks. To better understand and face repercussions on their activities, companies increasingly adopt integrated risk management systems. The objective of this study is to examine the link between the firm’s corporate strategic choices and its risk management approach. Specifically, this paper investigates whether the firm’s corporate strategy affects its level of risk exposure, the perception of risk consequences as well as its risk management strategy. Based on a sample of 110 non financial firms listed on the Toronto Stock exchange, we find that risk exposure level, perception of risk consequences and risk management strategy vary according to the firm’s business sector. Our results show also that a firm’s corporate strategy is a key determinant of its risk management approach.

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Journal of Management and Strategy
ISSN 1923-3965 (Print)   ISSN 1923-3973 (Online)


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