The Impact of Applying Governance Principles on Enhancing Risk Management: A Field Study on the Tourism Sector, Investment Environment, and Industrial Development in Jordan

Abstract

This study aimed to identify the impact of applying Governance Principles (Accountability, Transparency, Participation, Justice, Rule of Law) on enhancing Risk Management (Risk Identification, Analysis, Evaluation, Response, Monitoring) in government institutions concerned with the tourism sector, investment environment, and industrial development in Jordan.

To achieve the study objectives, the descriptive-analytical approach was adopted. The study population consisted of all employees in leadership and supervisory positions in the Ministry of Tourism and Antiquities, Ministry of Investment, and Ministry of Industry and Trade. A comprehensive survey method was used, and the valid sample for analysis consisted of (171) questionnaires. SPSS and SmartPLS software were utilized to analyze data and test hypotheses using Partial Least Squares Structural Equation Modeling (PLS-SEM).

The results showed that the level of applying Governance Principles in the surveyed sectors was high (mean = 4.19), and the level of Risk Management practices was also high (mean = 4.02). The results revealed a statistically significant positive impact at(0.05≥α)   of Governance Principles on enhancing Risk Management, where the model explained (58.8%) of the variance in Risk Management, with "Risk Analysis" being the most affected dimension.

In light of the results, the study recommended the necessity of enhancing participation in decision-making to reduce information gaps, adopting digital and objective tools for risk evaluation, and shifting from traditional crisis response to a scenario planning approach and contingency plans to deal effectively with future variables.