Work

Adaptive risk assessment: How massive disruption moderates risk propensity and organisational risk management strategies—lessons from COVID-19

Year: 2026

Type: article

Abstract: Firms reformulated their risk management strategies after COVID-19. This study examines how the perceived scale of disruption and decision-maker risk propensity influence investments in proactive and reactive risk management. Surveyed managers show that a higher perceived COVID-19 impact significantly increased adoption of risk management strategies, with individuals of low risk propensity more likely to implement them. Decision makers with high risk propensity engaged in adaptive risk assessments during large and prolonged crises, dynamically updating perceived disruption probabilities and substantially increasing risk management investments compared to low risk propensity counterparts. These findings emphasize the importance of organizations to adopt dynamic risk assessment tools that accommodate changing circumstances and to cultivate leadership cultures embracing diverse risk attitudes.

Source: Risk Management

DOI: 10.1057/s41283-026-00192-0

Authors: Daniel A. Sanchez-Loor, Trang Thi Thuy Huynh, Wei-Shiun Chang

Institutions: Chung Yuan Christian University, Escuela Superior Politecnica del Litoral, National Cheng Kung University

Language: English

Topic: Leadership, Behavior, and Decision-Making Studies

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

SDG: Good health and well-being

Open Access status: hybrid

Estimated APC paid: $3,190