From Compliance to Strategy: Drivers, Barriers, Practices and Outcomes Influencing ESG Risk Integration in Sub-Saharan Africa
摘要
As global attention shifts from regulatory compliance toward strategic risk management, organizations are increasingly expected to integrate risk considerations into core business processes. In sub-Saharan Africa, where businesses face multifaceted and rapidly evolving risks, the transition from a compliance-oriented approach to a strategic one remains inconsistent and insufficiently examined. Focusing on both large corporates and small- and medium-sized enterprises in sub-Saharan Africa, this study explores the drivers, barriers, practices, and outcomes that shape the integration of risk into corporate strategy across the region. Employing a qualitative methodology based on an extensive literature review and document analysis, the research identifies key internal and external factors influencing this shift. Findings reveal a growing recognition of the strategic value of risk integration; however, progress is constrained by regulatory fragmentation, capacity limitations, and inadequate resources. Despite these challenges, some firms are adopting innovative risk practices that align more closely with long-term strategic goals. The study offers critical insights into how risk integration is evolving in sub-Saharan Africa and provides practical recommendations for advancing from compliance to strategy in risk governance and decision-making.