How Risk Managers’ Psychological and Social Capital Promotes the Development of Risk-Management Capabilities

Abstract

The purpose of this study is to investigate the roles of risk managers’ psychological and social capital in risk-management capabilities (technical, business processes, and external resources) and the relationship between risk-management capabilities and management performance. This study treated organizational culture as a moderating variable. The research subjects (n = 1000) included top managers, general managers, and managers in various industries. This study found that risk managers’ positive psychological and social capital play important roles in corporate risk-management capabilities. The investigation of the moderating effect of organizational culture also provides important guidelines for future studies. This study found that components of psychological capital (e.g., hope, resilience, optimism, and self-efficacy) had a positive effect on substitute-risk-management capabilities (e.g., technology, business, and external management). Moreover, components of social capital (e.g., managerial tie utilization, trust, and solidarity) had a positive effect on substitute-risk-management capabilities (e.g., technology, business, and external management). The social and psychological capital of a company’s top management and managers are essential elements for strengthening the company’s capabilities for business and risk management. This study also found that the strength of the moderating effects on the relationship between psychological and social capital and risk-management capabilities differs according to the organizational culture. The implications of the study and limitations are discussed.