A literature review of systemic risk management and the role of stakeholders

Frame of the research: This study examines the relationship between non-financial risk governance, stakeholders, and management controls, employing a literature review and fuzzy-set qualitative comparative analysis (fsQCA). The findings indicate which configurations of controls and stakeholder involvement are necessary or sufficient for effective risk management, highlighting the pivotal role of stakeholders.Purpose of the paper: This paper explores the relationship between non-financial risk governance, the role of stakeholders, and management control objects. It aims to fill a gap in the literature by investigating how specific configurations of controls and stakeholder engagement contribute to systemic risk governance.Methodology: This study conducted a literature review combined with a fuzzy set qualitative comparative analysis (fsQCA) to examine and identify which management controls should be adopted to address various aspects of systemic risk management. This study also investigated stakeholder engagement in risk management processes. The fsQCA method was chosen for its ability to detect complex and non-linear relationships. A detailed calibration and validation process was followed to ensure methodological robustness.Findings: The findings indicate that certain risk components are discussed more frequently in the literature than others. Management controls are highlighted as essential tools for intervening in and mitigating risks, and stakeholders are shown to play a critical role in all stages of risk management. Analysis revealed which combinations of controls are sufficient or necessary across the different phases of the risk management process.Research limitations: This study is based on a theoretical framework suggesting that future research should include empirical investigations to explore the role of stakeholders in non-financial risk management. Moreover, the context-specific nature of fsQCA and the reliance on theoretical calibration introduce some limitations regarding generalisability. Practical implications: This study identifies the relationships between management controls and risk management phases, emphasising the critical role of stakeholders in non-financial risk management. The proposed framework can help companies identify the necessary actions to manage all stages of risk management and determine the most strategically important stakeholders, who require greater involvement in this process. Organisations can use the configurational insights provided by this study to design more resilient and inclusive risk governance systems.Originality of the paper: This paper is original in its approach, as it synthesizes literature on non-financial risk governance and stakeholder engagement, and subsequently applies fsQCA to determine the necessary and sufficient elements that shape systemic risk management. To the best of our knowledge, this is one of the first studies to apply fsQCA to a literature-based dataset in the context of non-financial systemic risk, thereby offering a novel methodological contribution.