Costs influence and mediating effect of corporate risk management on organizational performance: a study applied to the Brazilian Public Service

The objective of this exploratory study was to evaluate the mediating effect of Corporate Risk Management on the performance of Brazilian public institutions. To achieve the objective, an exploratory research was carried out, with a quantitative approach via structural equations. A questionnaire was applied to 139 civil servants from 15 different public government organizations. The results identified a significant mediating effect of Corporate Risk Management in the relationship between business strategies and the performance of Brazilian public institutions, and a direct ratio of 13.3%. Therefore, institutions must dedicate themselves to corporate risk management as a factor that enhances their business strategies. Examining Risk Management, it was observed that it was explained in 32.1%, with the variables that most impact being cost leadership, followed by differentiation.