Strategic Alignment of Risk Management and Corporate Governance: Boosting Manufacturing Performance

Abstract

The strategic alignment of risk management and corporate governance plays a critical role in enhancing manufacturing performance in China. This paper examines the impact of strategic alignment on risk management, decision-making, and overall performance, emphasizing innovative practices that could be adopted by Chinese manufacturers. Through an extensive literature review and empirical analysis, this study identifies common barriers to alignment, such as cultural and structural issues, lack of board independence, inadequate risk management systems, and regulatory challenges. It also offers practical solutions for overcoming these barriers, such as fostering a risk-aware culture, enhancing board independence, implementing robust risk management systems, aligning practices with regulatory requirements, and developing integrated strategies. The findings of this research highlight the benefits of strategic alignment, including improved risk management, better decision-making, and enhanced performance. Additionally, this study provides practical implications for industry professionals and suggests areas for further research, such as exploring the impact of organizational culture on strategic alignment, examining the role of technology in supporting alignment, and investigating the long-term effects of strategic alignment on organizational sustainability and resilience. Overall, this paper contributes to the understanding and application of strategic alignment in the manufacturing sector, offering valuable insights for academia and industry professionals alike.