Dynamic enterprise risk management as a strategic capability: a dynamic capabilities framework explaining organizational resilience in times of crisis

Purpose Organizations increasingly operate in environments characterized by pervasive uncertainty, systemic crises and interdependent risks. Traditional compliance-based approaches to enterprise risk management (ERM) are often insufficient to support effective organizational responses under such conditions. The purpose of this paper is to reconceptualize ERM as a dynamic strategic capability that enables far-sighted responses and strengthens long-term organizational resilience in times of crisis and adversity, by explicating the underlying mechanisms linking ERM and resilience. Design/methodology/approach This study adopts a theory-driven conceptual approach. Drawing on ERM research, dynamic capabilities theory and the organizational resilience literature, the paper develops an integrative conceptual framework that explains how ERM operates dynamically within organizations as a strategic capability. Findings The paper identifies three interrelated dynamic mechanisms through which dynamic ERM contributes to organizational resilience: sensing changes in the risk environment, integrating risk considerations into strategic decision-making and reconfiguring risk management practices. In addition, leadership orientation, organizational culture and governance structures are conceptualized as key contextual factors that moderate these relationships. Originality/value This paper advances ERM research by moving beyond static and compliance-oriented perspectives and positioning ERM as a dynamic strategic capability, and by explicitly theorizing the sensing, integration and reconfiguration mechanisms through which ERM enhances organizational resilience. By explicitly linking ERM to organizational resilience, the study offers novel theoretical insights grounded in dynamic capabilities theory and provides actionable guidance for managers and boards seeking to design adaptive risk management systems that support resilience, sustainability and long-term value creation in turbulent environments.