Does Risk Governance Predict Survival? Evidence from U.S. Growth-Stage Firms

Collins Kwadwo Amoah-Adjei1 & Samuel Oladapo Taiwo2
1 Finance Department, Temple University
2Rawls College of Business, Texas Tech University, United States.
DOI – http://doi.org/10.37502/IJSMR.2025.8311

Abstract

This study examines whether risk governance predicts survival among U.S. growth-stage firms. Drawing on agency theory and organizational resilience theory, we develop a multidimensional framework linking board oversight quality, internal risk infrastructure maturity, and innovation-aligned risk responsiveness to firm longevity. Using a longitudinal dataset (2010–2023) and Cox proportional hazards modeling, we find that firms with greater board independence, higher cognitive diversity, formal ERM adoption, and stronger internal controls exhibit significantly lower hazard rates of failure. While innovation intensity increases baseline risk, its adverse effects are mitigated when embedded within mature risk governance structures. Interaction analyses reveal that governance maturity moderates innovation-induced volatility, transforming risk-taking into sustainable growth capacity. These findings reposition risk governance from compliance mechanisms to strategic survival infrastructure within entrepreneurial ecosystems. The results offer actionable implications for founders, investors, and policymakers seeking to strengthen resilience among high-growth ventures.

Keywords: Risk Governance, Firm Survival, Growth-Stage Firms, Corporate Governance, Risk Management, Board Composition, Internal Controls, Innovation, U.S. Market

References

  • S. Wijaya and P. L. D. Rahmayanti, “The role of innovation capability in mediation of COVID-19 risk perception and entrepreneurship orientation to business performance,” Uncertain Supply Chain Management, vol. 11, no. 1. Growing Science, pp. 227–236, 2023. doi: 10.5267/j.uscm.2022.10.004.
  • O. Taiwo, “AI-Driven Trade Promotion Optimization and Financial ROI in CPG Firms: A Thematic and Analytical Review,” International Journal of Scientific Research in Science and Technology, vol. 11, no. 5, pp. 834–850, Sep. 2024, doi: 10.32628/ijsrst52310381.
  • Domańska-Szaruga, “Maturity of risk management culture,” Entrepreneurship and Sustainability Issues, vol. 7, no. 3. Entrepreneurship and Sustainability Center, pp. 2060–2078, Mar. 30, 2020. doi: 10.9770/jesi.2020.7.3(41).
  • Kalia and S. Gill, “Corporate governance and risk management: a systematic review and synthesis for future research,” Journal of Advances in Management Research, vol. 20, no. 3. Emerald, pp. 409–461, Apr. 26, 2023. doi: 10.1108/jamr-07-2022-0151.
  • O. Taiwo and O. Oloruntoba, “Margin Erosion Analysis in Consumer-Packaged Goods Supply Chains: Drivers, Impacts, and Strategic Responses,” International Journal of Scientific Research in Humanities and Social Sciences, vol. 1, no. 2, pp. 986–1000, Dec. 2024, doi: 10.32628/ijsrssh242776.
  • O. Taiwo, C. K. Amoah-Adjei, and A. Oluwatosin Oladayo , “Evidence-Based Consulting Frameworks for CPG Market Resilience Post Supply-Chain Crises,” Journal of Computational Analysis and Applications , vol. 31, no. 04, pp. 6858–6873, 2023, [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4955/3713
  • G. Henry-Machame, “The Human Factor in Digital Value Realization: Modeling Behavioral Barriers to Transformation,” Journal of Computational Analysis and Applications , vol. 33, no. 08, pp. 7856–7878, Dec. 2024, [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4956/3714
  • R. Tiamiyu, “Risk-Aware Machine Learning: Embedding Ethical Constraints into Predictive Models,” Journal of Frontiers in Multidisciplinary Research, vol. 4, no. 2, pp. 338–348, 2023, doi: 10.54660/.jfmr.2023.4.2.338-348.
  • O. Taiwo and O. O. Okosieme, “A Systems Thinking Approach to Data-Driven Consumer Protection: Integrating Finance, Supply Chain, and Policy,” Journal of Frontiers in Multidisciplinary Research, vol. 5, no. 2, pp. 136–147, 2024, doi: 10.54660/.ijfmr.2024.5.2.136-147.
  • O. Taiwo, O. R. Tiamiyu, and O. M. Ayodele, “Unified Predictive Analytics Architecture for Supply Chain Accountability and Financial Decision Optimization in CPG and Manufacturing Networks,” Journal of Information Systems Engineering and Management, vol. 8, no. 4, Dec. 2023, doi: 10.52783/jisem.v8i4.37.
  • Samuel Oladapo and C. K. Amoah-Adjei, “Financial Risk Optimization in Consumer Goods Using Monte Carlo and Machine Learning Simulations,” Jan. 2022. doi: 10.30574/wjarr.2022.14.1.0385.
  • C. Okafor, “Edge-Computing Architectures for Real-Time Agricultural Decision Support Using Iot Sensor Networks,” Journal of Frontiers in Multidisciplinary Research, vol. 04, no. 02, pp. 329–337, 2023, doi: 10.54660/.JFMR.2023.4.2.329-337.
  • -Y. Lee, C.-R. Wen, and B. Thi-Thanh-Nguyen, “Board Expertise Background and Firm Performance,” International Journal of Financial Studies, vol. 12, no. 1. MDPI AG, p. 17, Feb. 14, 2024. doi: 10.3390/ijfs12010017.
  • Makkonen, “Board diversity and firm innovation: a meta-analysis,” European Journal of Innovation Management, vol. 25, no. 6. Emerald, pp. 941–960, Feb. 21, 2022. doi: 10.1108/ejim-09-2021-0474.
  • Sarto and S. Saggese, “Board industry expertise and innovation input: evidence on the curvilinear relationship and the moderating effect of CEO,” European Journal of Innovation Management, vol. 25, no. 6. Emerald, pp. 775–803, Apr. 08, 2022. doi: 10.1108/ejim-07-2021-0372.
  • Arora, “Board Leadership Structure and Firm Performance: Moderating Effects of Board Independence,” Journal of Emerging Market Finance, vol. 23, no. 1. SAGE Publications, pp. 32–55, Aug. 14, 2023. doi: 10.1177/09726527231190690.
  • Erin, O. Bamigboye, and J. Arumona, “RISK GOVERNANCE AND FINANCIAL PERFORMANCE: AN EMPIRICAL ANALYSIS,” Business: Theory and Practice, vol. 21, no. 2. Vilnius Gediminas Technical University, pp. 758–768, Nov. 09, 2020. doi: 10.3846/btp.2020.10850.
  • V. Nguyen, “Exploring the impacts of risk perception and risk management planning on innovation orientation: a PLS-SEM approach,” Engineering, Construction and Architectural Management, vol. 33, no. 1. Emerald, pp. 509–531, Nov. 12, 2024. doi: 10.1108/ecam-01-2024-0137.
  • Crispim, L. H. Silva, and N. Rego, “Project risk management practices: the organizational maturity influence,” International Journal of Managing Projects in Business, vol. 12, no. 1. Emerald, pp. 187–210, Jul. 30, 2018. doi: 10.1108/ijmpb-10-2017-0122.
  • O. T. Samuel Oladapo Taiwo and O. O. O. Obianuju O. Okosieme, “AI-Powered Supply Chain Risk Intelligence for Consumer Protection in CPG Distribution Networks,” International Journal of Scientific Research in Computer Science Engineering and Information Technology. Technoscience Academy, p. 1008, Nov. 15, 2023. doi: 10.32628/cseit23906782.
  • C. Okafor, “An Intelligent IoT-Driven Soil Moisture Monitoring and Irrigation Optimization System for Precision Agriculture,” International Journal of Scientific Research in Computer Science Engineering and Information Technology. Technoscience Academy, p. 404, Jan. 01, 2024. doi: 10.32628/cseit2425453.
  • C. Okafor, “Designing Secure and High-Performance RESTful APIs for Data-Intensive Analytics Platforms,” International Journal of Scientific Research in Science Engineering and Technology. Technoscience Academy, p. 299, Nov. 10, 2019. doi: 10.32628/ijsrset1985217.
  • C. Okafor, “Designing a Secure and Scalable Real-time Voting System: Analyzing a Successful Real-time Voting System Implementation,” World Journal of Advanced Research and Reviews, vol. 4, no. 2. GSC Online Press, pp. 291–306, Dec. 31, 2019. doi: 10.30574/wjarr.2019.4.2.0158.
  • Süsi and O. Lukason, “Corporate governance and failure risk: evidence from Estonian SME population,” Management Research Review, vol. 42, no. 6. Emerald, pp. 703–720, Jun. 17, 2019. doi: 10.1108/mrr-03-2018-0105.
  • M. Andries, D. Balutel, I. Ihnatov, and S. G. Ursu, “The nexus between corporate governance, risk taking, and growth,” PLOS ONE, vol. 15, no. 2. Public Library of Science (PLoS), p. e0228371, Feb. 04, 2020. doi: 10.1371/journal.pone.0228371.
  • C. Okafor, “Re-Architecting Legacy Multi-Page Enterprise Applications into Scalable Single-Page Architectures: A Performance and Revenue Impact Study,” International Journal of Scientific and Management Research, vol. 2, no. 3, pp. 42–66, 2019.
  • Yudhanto and A. J. Simamora, “Environmental, Social, and Governance Risk on Firm Performance: The Mediating Role of Firm Risk,” Binus Business Review, vol. 14, no. 2. Universitas Bina Nusantara, pp. 223–234, Jun. 24, 2023. doi: 10.21512/bbr.v14i2.8935.
  • G. Henry-Machame, “Reimagining Enterprise Transformation: A Multi-Dimensional Framework for Sustainable Value Realization,” Apr. 2023. [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4735
  • S. Beasley, B. C. Branson, E. C. Braumann, and D. P. Pagach, “Understanding the Ecosystem of Enterprise Risk Governance,” The Accounting Review, vol. 98, no. 5. American Accounting Association, pp. 99–128, Aug. 31, 2023. doi: 10.2308/tar-2020-0488.
  • K. Hassan, M. E. Abdulkarim, and H. R. Ismael, “Risk governance: exploring the role of organisational culture,” Journal of Accounting & Organizational Change, vol. 18, no. 1. Emerald, pp. 77–99, Sep. 13, 2021. doi: 10.1108/jaoc-01-2021-0003.
  • C. Okafor, “Visual Analytics for Measuring and Improving Collaborative Software Development in Academic Environments,” Journal of Frontiers in Multidisciplinary Research, vol. 1, no. 1. Anfo Publication House, pp. 210–219, 2020. doi: 10.54660/.ijfmr.2020.1.1.210-219.
  • C. Okafor, “An Intelligent IoT-Driven Soil Moisture Monitoring and Irrigation Optimization System for Precision Agriculture,” Feb. 2024. doi: 10.32628/CSEIT2425453.
  • C. Okafor, “Designing Secure and High-Performance RESTful APIs for Data-Intensive Analytics Platforms,” International Journal of Scientific Research in Science Engineering and Technology. Technoscience Academy, p. 299, Nov. 10, 2019. doi: 10.32628/ijsrset1985217.
  • O. T. Samuel Oladapo Taiwo, “PFAITM: A Predictive Financial Planning and Analysis Intelligence Framework for Transforming Enterprise Decision-Making,” International Journal of Scientific Research in Science Engineering and Technology. Technoscience Academy, p. 472, Oct. 17, 2022. doi: 10.32628/ijsrset25122272.
  • Kaiser, “Board Effectiveness and Firm Risk,” The Journal of Impact and ESG Investing, vol. 1, no. 2. With Intelligence LLC, pp. 68–86, Oct. 23, 2020. doi: 10.3905/jesg.2020.1.006.
  • Anifowose, “Augmented Decision Intelligence: Leveraging AI and Predictive Analytics for Executive Strategy Formulation,” Journal of Computational Analysis and Applications, vol. 31, no. 3, pp. 750–777, Mar. 2023, [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4136
  • Anifowose, “The Business Analytics Value Chain: Aligning Data Strategy with Corporate Performance Metrics,” Journal of Computational Analysis and Applications, vol. 33, no. 1A, pp. 751–766, Jan. 2024, [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4166
  • Gontarek and Y. Belghitar, “Risk governance: Examining its impact upon bank performance and risk‐taking,” Financial Markets, Institutions & Instruments, vol. 27, no. 5. Wiley, pp. 187–224, Sep. 21, 2018. doi: 10.1111/fmii.12103.
  • O. Lawal, “Next-Generation GRC Framework: Integrating ESG and Cyber Risk Metrics,” Journal of Computational Analysis and Applications, vol. 31, no. 3, pp. 778–795, Mar. 2023, [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4141
  • O. Lawal, “Human-AI Collaboration in Security Operations Centers (SOC 2. 0): Opportunities, Challenges, and Pathways Forward,” Journal of Computational Analysis and Applications, vol. 33, no. 8, pp. 7156–7175, Aug. 2024, [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4138
  • U. Uke, “Lean Six Sigma-Driven Maintenance Process Optimization in African Manufacturing Industries: A Systematic Literature Review,” Journal of Computational Analysis and Applications, vol. 29, no. 6, pp. 1346–1366, Jun. 2021, [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4028
  • U. Uke, “Circular Economy and Asset Life Extension: Engineering Approaches for Industrial Sustainability,” Journal of Computational Analysis and Applications, vol. 25, no. 8, pp. 134–152, Aug. 2018, [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4137
  • Areghan and O. S. Ndibe, “Explainable AI for Autonomous Threat Detection in Critical Infrastructure Systems,” Journal of Computational Analysis and Applications, vol. 33, no. 8, pp. 6841–6857, Aug. 2024, [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4026
  • H. Khan, S. Ali, P. Xiaobao, and L. Zhiying, “Responsive to Proactive Market Orientations: Unleashing the Potential of Effectuation–Causation Blending for Business Model Innovation,” IEEE Transactions on Engineering Management, vol. 71. Institute of Electrical and Electronics Engineers (IEEE), pp. 14307–14325, 2024. doi: 10.1109/tem.2024.3403571.
  • S. Ndibe, “National Cyber Resilience Index: A Data-Driven Framework for Measuring Preparedness,” Journal of Computational Analysis and Applications, vol. 33, no. 1A, pp. 729–750, Jan. 2024, [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4030
  • O. Taiwo, O. O. Aramide, and O. R. Tiamiyu, “Blockchain and Federated Analytics for Ethical and Secure CPG Supply Chains,” Journal of Computational Analysis and Applications, vol. 31, no. 3, pp. 732–749, Mar. 2023, [Online]. Available: https://eudoxuspress.com/index.php/pub/article/view/4024
  • Oluwabukola Racheal Tiamiyu and Ogochukwu Susan Ndibe, “From Compliance Burden to Enforcement Precision : AI Strategies for Reducing False Positives in Anti-Money Laundering Systems,” International Journal of Scientific Research in Science, Engineering and Technology, vol. 11, no. 5. Technoscience Academy, pp. 421–433, Sep. 30, 2024. doi: 10.32628/ijsrset2513837.
  • O. Salami, “Leveraging Natural Language Processing to Detect Non-Compliance in Clinical Documentation: Current Advances, Challenges, and Future Directions,” International Journal of Scientific Research in Science, Engineering and Technology. Technoscience Academy, pp. 459–473, Oct. 17, 2023. doi: 10.32628/ijsrset2513822.