CORPORATE GOVERNANCE AND STRATEGIC RISK MANAGEMENT: AN EMPIRICAL STUDY OF BOARD EFFECTIVENESS IN DECISION-MAKING

Abstract

Corporate governance and strategic risk management have emerged as central pillars in ensuring resilience, accountability, and long-term sustainability of organizations in dynamic environments. This study explores the empirical relationship between board effectiveness and the quality of decision-making in contexts characterized by strategic risk. The research employs a mixed-method design integrating quantitative analysis of firm-level governance and performance data with qualitative insights from directors and executives across financial services, manufacturing, and technology industries. Data were drawn from 120 publicly listed companies operating in India, Singapore, and the United Kingdom during the period 2018 to 2023, complemented by survey responses and interviews with 45 board members and senior executives. The findings reveal that board independence, diversity in expertise, and the presence of formal risk committees have a significant positive effect on decision quality and timeliness when organizations are faced with complex risks. Firms with boards that actively engage in structured risk oversight and strategic monitoring achieved higher levels of resilience and reported stronger performance on risk-adjusted indicators compared to their peers. The results underscore the importance of moving beyond compliance-based governance toward a model in which boards function as active strategic partners. This study contributes to governance scholarship by offering evidence of how effective boards shape risk-related decision outcomes and provides actionable recommendations for policymakers, regulators, and corporate leaders.