An Extractive Sector Perspective of Risk Management and Its Influence on Corporate Sustainability: An Empirical Analysis

Authors

  • L. Andeobu Torrens University, Victoria
  • S. Hettihewa Federation University
  • C.S. Wright The Institute of International Studies

DOI:

https://doi.org/10.33423/jabe.v24i4.5352

Keywords:

business, economics, Australia, corporate sustainability, extractive sector, risk management, stakeholder value

Abstract

This study explores how risk management (RM), affects shareholder value (SV) and corporate sustainability (CS) in extractive-sector (ES) firms. Employees of Australia’s top 20 mining and oil-and-gas (O&G) firms were surveyed about their firm’s risk profile, risk attitudes, and RM practices. The survey drew 496 responses from 987 employees. The literature review raised several gaps: Does RM enhance SV and CS of ES firms; How similar is RM across ES firms; Are mining and O&G risks sufficiently different to warrant splitting them? The survey findings suggest that ES-firm risk profiles, risk attitudes, and RM practices are: Broader than in non-ES firms; Important to SV via CS; and Similar within and across mining and O&G. Survey responses suggest that ES employees recognize the nature of RM and of the importance of the ES sector via employment, investment, and raw-material flows. This study affirms that mining- and O&G-firmRM practices are converging and is a benchmark for future studies, as high-carbon energy (coal mining and O&G) is supplanted by nuclear and non-ES-renewable energy.

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Published

2022-08-14

How to Cite

Andeobu, L., Hettihewa, S., & Wright, C. (2022). An Extractive Sector Perspective of Risk Management and Its Influence on Corporate Sustainability: An Empirical Analysis . Journal of Applied Business and Economics, 24(4). https://doi.org/10.33423/jabe.v24i4.5352

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Articles