Systematic Risk Management Practices and Improved Risk Culture in Slovenian Non-Financial Corporations: A SEM Approach

There is limited empirical evidence on how the risk management process is implemented in non-financial corporations, resulting in an incomplete understanding—particularly in post-transitional economies such as Slovenia. Using Structural Equation Modeling on data collected from Slovenian non-financial corporations in 2023, we find that a well-structured risk management process positively influences the adoption of advanced risk management methods and practices. This, in turn, significantly reduces challenges associated with risk management, enhances its overall effectiveness, and directly contributes to corporate value creation. These findings highlight the strategic importance of risk management as an essential component of organizational governance.