20.500.12556/DKUM-98333 From ESG risk governance to firm performance measuring the quality of corporate risk management This article examines corporate risk management as a measurable and economically relevant driver of firm performance, with a specific focus on the integration of environmental, social, and governance (ESG) risks into the risk management process. We develop a Composite Risk Management Index (CRMI) based on a structured questionnaire that captures the frequency, depth, and integration of risk management practices, including explicit treatment of ESG-related risks. Using cross-sectional econometric models on a sample of medium-sized and large companies, we analyse the relationship between CRMI and multiple performance and stability indicators, including return on equity, return on assets, operating cash-flow efficiency, and financial stability. The results indicate a statistically and economically significant association between higher risk management maturity and superior business performance across all dimensions. The findings suggest that ESG risk governance, when embedded within an integrated risk management framework, contributes to value creation rather than representing a purely compliance-driven activity. From a sustainability perspective, the results demonstrate that ESG-integrated risk management enhances long-term corporate resilience and supports sustainable value creation. To support practical interpretation, the study is complemented by a web-based application that enables real-time self-assessment of risk management quality under conservative methodological assumptions. corporate risk management ESG risk governance composite index firmperformance financial stability sustainability measurement true false true Angleški jezik Angleški jezik Znanstveno delo 2026-06-05 11:33:29 2026-06-05 11:33:29 2026-06-06 03:07:00 0000-00-00 00:00:00 2026 0 0 str. 1-19 issue 10, [art. no.] 5131 Vol. 18 2026 0000-00-00 Zaloznikova Objavljeno NiDoloceno 2026-03-03 2026-05-13 2026-05-19 005.334:658.14 280617987 10.3390/su18105131 2071-1050 https://www.mdpi.com/2071-1050/18/10/5131 1 75f2ed7d-60c1-11f1-938a-00155d580e34 https://dk.um.si/Dokument.php?lang=slv&id=206794 RAZ_Jagric_Timotej_2026.pdf RAZ_Jagric_Timotej_2026.pdf 1 1679C3580D5BBF64D158256965CDF70E 2e564ff682e3384c6d76ad9f47c3429c1fda6396760ba1dfb664625ce7adcff6 97d982aa-60c1-11f1-938a-00155d580e34 https://dk.um.si/Dokument.php?lang=slv&id=206795 Ekonomsko-poslovna fakulteta 0 0 0