Сorporate governance mechanisms for risks reduction in logistics supply chains under martial arts

Abstract

The article provides a conceptual analysis of the role of corporate governance as an institutional mechanism for mitigating risks in supply chain logistics under conditions of martial law and prolonged geopolitical uncertainty. It is argued that large-scale military conflict fundamentally transforms the nature of supply chain risks, intensifying their systemic, multi-level and cascading characteristics, whereby local disruptions propagate across the entire supply network and threaten business continuity. In such an environment, supply chain risk management can no longer be treated solely as an operational function and requires integration into the strategic framework of corporate governance. The study conceptualises corporate governance as a coordinating and adaptive system that aligns the interests of shareholders, boards, management and key stakeholders in addressing logistics-related risks. Four interrelated groups of corporate governance mechanisms for supply chain risk mitigation are identified and systematised: institutional mechanisms (strengthening the role of boards of directors, establishing risk committees, and clear allocation of managerial responsibilities); information and analytical mechanisms (transparency, management reporting, key performance indicators and early warning systems); strategic mechanisms (definition of risk appetite, diversification of suppliers and logistics routes, and a shift from efficiency-oriented to resilience-oriented supply chain strategies); and digital mechanisms (use of ERP and ERM systems, data analytics and digital monitoring platforms). The article demonstrates that under conditions of extreme uncertainty corporate governance mechanisms perform not only control functions but also coordination and strategic adaptation functions, enabling firms to respond proactively to security, operational and reputational risks within supply chains. Particular attention is paid to the role of ESG-oriented governance practices as a means of legitimising strategic decisions and reducing value-based and reputational risks in logistics networks. The study concludes that the integration of corporate governance mechanisms into supply chain risk management frameworks provides a conceptual foundation for enhancing the resilience, adaptability and long-term reliability of supply chains in environments characterised by high uncertainty and systemic disruption.