Blockchain-based Risk Management Framework for Digital Asset Exchanges: Bridging COSO ERM with Emerging Technologies

Abstract

This study proposes and validates a blockchain-based risk management framework tailored for digital asset exchanges by aligning blockchain-specific risks with the COSO ERM 2017 framework. Data were collected using a convergent mixed-methods approach: qualitative data were gathered through semi-structured interviews with 15–20 industry experts—selected via stratified purposeful and snowball sampling—and document analysis; quantitative data included over 100 survey responses and operational metrics such as downtime incidents, transaction volume, and cyberattack rates. Quantitative analysis utilized descriptive statistics, correlation analysis, regression models, and Monte Carlo simulations, with tools such as SPSS, R, and Python, while qualitative data were thematically analyzed using NVivo. Key findings revealed that the framework led to a 60% reduction in downtime incidents, cyberattack success rates, and compliance breaches, while stakeholder surveys indicated high satisfaction with usability (mean = 4.5) and cybersecurity mitigation (mean = 4.2), though moderate satisfaction with decentralized governance alignment (mean = 3.8). The study concludes that the framework effectively bridges technical, regulatory, and governance gaps in current practices, offering a scalable, adaptable model for enhancing operational resilience and regulatory compliance in blockchain-based ecosystems.