The aim of this thesis is to contribute to the literature with an investigation into strategic risk management practices from a strategic management and management accounting perspective. Previous research in strategic risk management has not provided sufficient evidence on the mechanisms behind firm practices, processes and tools for managing strategic risks, and their contingencies for value creation. In particular, the purpose of the thesis has been to fill the gaps in the literature by asking the question of: How does strategic risk management influence firms’ ability to deal with risks that may affect long-term competitive advantage and corporate longevity? To answer this question, the literature in strategic management and management accounting has been synthesized in order to identify management practices, processes and systems that take an active stance in making better decisions about risk-taking by preparing for the inherent uncertainty of strategic decisions. The thesis comprises four chapters that individually address the blind spots in the literature and in combination answer the overall research question. It suggests that proactive management practices such as strategic planning, interactive control systems and enterprise risk management processes, can be effective means in dealing with strategic risk. It further emphasizes the role of participative decision-making, a participative leadership style and the employees’ psychological safety for raising voice as important factors in order to benefit from these management practices most advantageously. Besides from enhancing our theoretical understanding of these mechanisms the thesis further provides empirical evidence on the interplay between the identified managerial practices and contextual factors as well as their ability on managing risks and create value for the firm.