Li Xiaofeng, Shirley Enriquez
ABSTRACT
This study examines the relationship between business risk management (BRM) implementation and performance at YonYou Network Technology Co., Ltd., a leading Chinese enterprise software provider. Grounded in the COSO ERM framework and Balanced Scorecard (BSC), the research addresses a critical gap by empirically testing whether a mature BRM framework delivers performance advantages, and explores a potential “value perception gap” where risk management benefits may not appear in conventional metrics. Using a mixed-methods design, quantitative data were collected via structured questionnaire from 385 employees across departments and levels, complemented by qualitative insights from open-ended questions. Descriptive analysis showed moderate overall financial, credit, and operational risks, with subscription revenue volatility and data security compliance failures as most frequent. BRM implementation was highly rated across identification, evaluation, treatment, and monitoring, but only moderate in risk analysis—indicating a key maturity gap. Organizational performance was high in customer, internal process, and learning & growth dimensions, yet moderate in financial performance. Crucially, Pearson correlation found no statistically significant relationship between BRM implementation and any performance dimension, supporting a “value perception gap” where risk management’s defensive benefits are not captured by standard metrics. The study concludes that YonYou BRM system, though structurally mature, needs to shift from compliance-oriented to a strategic enabler. Recommendations include predictive risk analytics, risk-adjusted performance indicators (RAPIs), and integrated risk culture. This study contributes to literature by clarifying BRM-performance complexities in digital firms and providing a roadmap to transform BRM into a strategic function.
Keywords: Business Administration, Business Risk Management, Organizational Performance, Balanced Scorecard, Mixed-Methods, Risk Management Process, China, Asia
https://doi.org/10.57180/vtpi9137