THE EFFECT OF RISK MANAGEMENT ON PENSION SCHEME: THE MEDIATING ROLE OF RETIREMENT LAW AN ANALYSIS STUDY OF NON-PROFIT SECTOR IN ERBIL, KURDISTAN

Abstract

In the Kurdistan Region, the majority of the population works in the nonprofit sector, working daily to serve our region, and strengthen society, while nonprofit workers do not have access to workplace retirement plans. The fastest-growing segments of the nonprofit workforce, part-time and contract workers are particularly likely to lack coverage. So, addressing risks within defined contribution pension systems is essential for strengthening economic security and ensuring sustainable retirement outcomes, particularly in the nonprofit sector of the Kurdistan Region. This study examines the impact of government efforts to enhance risk management practices, improve financial and strategic risk, and mitigate security risk within pension system. It further analyzes the mediating role of retirement law in shaping pension scheme outcomes, including flexible contribution mechanisms, the provision of robust health coverage, and long-term financial security. A structured questionnaire was distributed to 400 respondents of non-profit sector organization in Erbil, with 371 valid forms retained for analysis. Data were analyzed using SPSS through descriptive statistics, validity and reliability testing, correlation analysis, regression modeling, to examine hypotheses and assess mediation effects. Results demonstrated high internal consistency, strong construct validity, and statistically significant relationships among all variables, findings confirmed that retirement law fully mediates the relationship between risk management and pension scheme outcomes, indicating that legislative frameworks are critical for enhancing system performance. Among risk dimensions, security risk exerted the strongest influence, followed by strategic and financial risks. The study concludes that effective risk management, supported by transparent and well-structured retirement legislation, plays a decisive role in strengthening pension scheme resilience and improving retirement outcomes for nonprofit employees. Key recommendations include expanding access to collective pension plans, diversifying investment portfolios, reinforcing regulatory oversight, enhancing auditing mechanisms, and designing inclusive pension policies targeting under-served groups.