Relation between Risk Management - Board of directors is the key for a sustainable development of any company.

Risk management involves analysing of the internal and external organizational framework (including relationship with stakeholders), establishing risk criteria, assessment, analysing and prioritizing of risks using proper techniques and specialized tools (expert systems) and proper management of available resources for mitigate the risk of systems, equipment and plant components. (RBI - Risk Based Inspection approach could be used for directing resources in inspection of high-risk component and avoiding wasting resources for inspection of low-risk components).

Board of directors are responsible for taking appropriate decision related to risk treatment. The quality of human resources (technical staff or management) plays a decisive role in implementation of any management system (project management, quality management, management control system last but not least risk management system)...with direct implications on the sustainable development of the company.

Thanks Alin Constantin Murariu. May I request you for more. I mean, about any theory which is incorporating them ( CSP, MCS, RM and BOD).

Yes Sallourn, this theory is also good but 'Agency Theory' is just the tip of the iceberg...  for a sustainable development we must look at this issue in more depth... and from all perspectives.

"What is the 'Agency Theory'

The agency theory is a supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving problems that can exist in agency relationships due to unaligned goals or different aversion levels to risk. The most common agency relationship in finance occurs between shareholders (principal) and company executives (agents)."

Read more: Agency Theory Definition | Investopedia http://www.investopedia.com/terms/a/agencytheory.asp#ixzz4LRwMicWY

http://www.investopedia.com/terms/a/agencytheory.asp

Thanks again Alin and also Charbel Salloum. But I am still confused. For BOD and CSP, I think Resource Dependency Theory is good to explain. However if I want to incorporate both MCS and RM as mediating variable, what the other theory would give me better understanding the relationship?

I teach on an MBA focusing on Leadership and Sustainability.  I am alos on the Board of a Dallas-based company as an independent director.  All the Board can do is remind the operating directors of their responsibility towards nature and society.  The Board does not really DECIDE but it influences.  I  would affirm that the road to more resonsible business is a long one but we have at least started along it.  Roy

Thanks Roy Damary.

Dear Fakir and others,

All of your suggestions are good.My thinking also better to underpin agency theory as well as resource dependency theory for your study.

Thanks Ajanthan and others.

What about institutional theory? I think both risk management and management control system is part of business organization and may influence performance or not depending on context of the institute. How you view the flow? Does it not better than agency perspective? 

Dear Fakir

why donot you try the strategic alignment framework and strategic fit:

http://www.irma-international.org/viewtitle/14262/

Chapter Strategic Information Systems the Concept of Alignment

Dear Fakir,

It depends on what exactly you want to analyse and on how deep you want to go with your analysis. But generally you could contrast the agency theory with the stewardship theory on the background of your findings. The agency theory assumes that there are inherent conflicts between the owners of the entity (the principals) and the management of the entity (the agents). To the contrary, the stewardship theory suggests that the agents are genuine servants of the owners. Both the theories are widely covered by academic literature and it should not impose any problem on you to find enough references.

Paul

 Thanks Theodorou and noted your suggestion.

 Thanks Paul. Noted.

Dear Fakir,

You are very welcome!

Paul

Hi,

You may have a look to this paper:

Knowledge Stewardship as an Ethos-Driven Approach to Business Ethics

Stuart M. Belle

Journal of Business Ethics, April 2017, volume 142, issue 1, p 83-91

best regards