Strategic enterprise risk management and operational resilience in China’s pharmaceutical industry: A comparative analysis

Abstract

This paper is a comparative research paper on Sinopharm and Kangtai Biological during COVID-19 to determine the effective enterprise risk management (ERM) in the companies during the pandemic. This study aims to analyse how ownership structure, regulatory support, and financial stability contribute to the effectiveness of risk management strategies in overcoming supply chain disruptions, regulatory compliance, and market uncertainties. Seventeen articles, reports, and literature were used in this study to employ a qualitative research methodology aimed at studying the role of ERM in improving operational resilience during the pandemic (Rajabi et al., 2024). The results indicate that ownership structure has a strong influence on the effectiveness of ERM, and the ability to manage risks is more structured, supported by resources, and proactive in the case of state ownership (Saeidi et al., 2021). Sinopharm has enjoyed massive governmental support, but Kangtai, which is a privately owned business, has had to rely on other risk mitigation measures to ensure business continuity. This study contributes to the ERM literature by demonstrating that ownership structure functions as a critical external determinant of risk management effectiveness in crisis contexts.