A Conceptual Model for Global Risk Management, Compliance, and Financial Governance in Multinational Corporations

In an increasingly interconnected global economy, multinational corporations (MNCs) face complex challenges in risk management, compliance, and financial governance. These challenges stem from diverse regulatory frameworks, geopolitical uncertainties, financial risks, and evolving technological landscapes. This paper presents a conceptual model designed to enhance global risk management, regulatory compliance, and financial governance in MNCs. The model integrates advanced risk assessment frameworks, artificial intelligence (AI)-driven compliance monitoring, and adaptive financial governance strategies to ensure resilience and efficiency. The proposed model incorporates a multi-layered risk management approach that aligns enterprise risk management (ERM) with international regulatory standards. It leverages predictive analytics and machine learning algorithms to identify, assess, and mitigate risks proactively. The compliance framework within the model integrates real-time regulatory tracking and automated reporting mechanisms, ensuring adherence to global financial regulations such as the Sarbanes-Oxley Act (SOX), Basel III, and General Data Protection Regulation (GDPR). Financial governance in MNCs necessitates transparency, accountability, and agility in decision-making. This study emphasizes the role of blockchain technology in financial reporting, fraud detection, and transaction integrity. A robust internal control system embedded within the model ensures financial discipline while addressing cross-border taxation, currency fluctuations, and cybersecurity threats. Additionally, the model incorporates governance mechanisms that foster ethical corporate behavior, stakeholder engagement, and sustainable business practices. The conceptual model is validated through a qualitative analysis of case studies from leading MNCs across various industries. The findings indicate that integrating AI, blockchain, and advanced risk management strategies significantly enhances regulatory compliance, financial stability, and corporate resilience. The study highlights the need for a dynamic, technology-driven governance framework that can adapt to evolving risks and regulatory environments. This research contributes to the body of knowledge on corporate risk management by offering a strategic roadmap for MNCs to navigate global financial uncertainties effectively. Future research should focus on empirical validation of the model using quantitative data and real-world implementation insights.