Risk Management in Circular Economy Strategies

The latest crisis accelerate the debate about the non-sustainability of the current business approach, stimulating the rethinking of business models and strategies according to global corporate responsibility which embraces economic, social and environmental issues. The shift from linear to circular economy (CE) can sustain the social progress and economic growth in the respecting of the scarce natural resources. The adoption of circular principles by companies implies an adjustment of their current business and/or the identification of new businesses, taking along a number of risks related to CE strategies’ definition, assessment and realization. Even though scholars and international guidelines emphasize the importance of a risk-focused approach to strategy, the risks related to CE are not adequately discussed. According to these considerations, this paper aims at outlining a theoretical framework for CE risks management based on the integration among three fundamental assets (governance, network, and innovation) for the success of circular strategies. In this way, we aim to fill a gap in the existing literature and open a research proposal for the improvement of CE strategic decision-making processes.