The role of risk management in the sustainability of production facilities in Saudi Arabia

Sami A. Morsi ()

International Journal of Innovative Research and Scientific Studies, 2025, vol. 8, issue 6, 714-725

Abstract: This study explores the importance of comprehensive risk management strategies for the continued operational sustainability of Saudi Arabia’s industrial production facilities. The Kingdom faces multifaceted challenges such as operational risks, market risks, environmental risks, and ever-changing regulations as the Saudi Arabian Vision 2030 economic diversification plans continue. This research utilizes a mixed-method approach by quantifying the management performance metrics of risk management and the operational sustainability of 187 Saudi production facilities in the oil, gas, manufacturing, and petrochemical sectors, supplementing it with qualitative data from 42 industry executive participants. The results show that facilities with coordinated risk management principles scored operational sustainability on average 27.3% and 18.6% greater in financials than facilities with fragmented risk management approaches. This analysis emphasizes five focus areas of risk management pertinent to Saudi Arabia, which are: (1) climate resilience and water security, (2) rule of law foresight, (3) supply chain resilience, (4) technology acceptance, and (5) human capital. To conclude, risk management in Saudi Arabia’s adaptive economy should transcend mere compliance frameworks; policies should be an organizational culture system to safeguard sustained industrial activity.

Keywords: Economic production; Environment; Industrial sustainability; Risk management; Saudi Vision 2030. (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:aac:ijirss:v:8:y:2025:i:6:p:714-725:id:9671

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