Systemic Risk Management and Stakeholder Engagement: Insights From Business CSR Disclosure

This study investigates corporate strategies for integrating non-financial risks and stakeholder engagement into business man-agement frameworks. Our inquiry analyzes the extent to which companies explicitly or implicitly incorporate stakeholderperspectives into their risk management practices. Based on the four fundamental pillars of risk management outlined by theInstitute of Risk Management (IRM 2002), this study seeks to elucidate the multidimensional and comprehensive nature ofstakeholder engagement in risk management processes. This study is based on a content analysis of 253 sustainability reports andNon-Financial Statements drawn from different categories of companies representing the Italian market: large companies, smalland medium-sized enterprises (SMEs), cooperatives, and public utilities. The results reveal that companies primarily address riskmanagement and control in their reports, aligning with the literature. Although risk components are equally important in man-aging adverse events, the results show a high percentage of risk analysis unlike what emerged from the literature, and a smallerpercentage of companies focused on risk monitoring and risk communication. Stakeholder engagement levels vary based oncompany type and the activities performed in the risk governance process. From a theoretical perspective, this study contributesto systemic risk management research by integrating stakeholders into risk governance models. From a managerial perspective,this study offers implications for both risk management and sustainability disclosure practices. Limitations include the sample ofItalian companies only and the different publication years of the collected reports.