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This study aims to focus on the development and testing of a social risk management scale that could be applied to identify internal and external dimensions of strategic risks.Design/methodology/approachThis study applied a quantitative approach for testing an theoretical model in the Brazilian mining sector, using partial least squares–structural equation modeling to assess reliability and validity of the dimensions and model.FindingsResults points that internal and external risks have similar impact on general risk in the mining sector on the company studied. The research also identifies multidimensional scales consisting of internal (company policy, attitudes, loss of assets, human resources and operational) and external risks (market, strategic, social, credit, liquidity, loss of assets and technological). The results also points the relative importance of these dimensions and sub-dimensions on general business strategic risks.Research limitations/implicationsThe scale was tested in just one company and, as a case study approach, the results are of limited generalization. Also, the scale was developed in the mining sector, so also the scale may require adaptation to applications in other contexts.Practical implicationsThe multidimensional and hierarchical approach applied to modeling and scale development helps managers to understand the nature of risks and how to minimize them in business strategic settings.Social implicationsThe study points out cues for managers to reconcile divergent sources of strategic risks that affect business, taking in to account the social dimension as a central element of risk management.Originality/valueThe study proposes and tests a scale with a multidimensional and hierarchical approach for social risk managing.
Social Responsibility Journal – Emerald Publishing
Published: Oct 21, 2019
Keywords: Stakeholders; Strategic management; Mining sector; Social risk
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