Financial Risk Management Practices in Financial and Non-Financial Firms; Survey of Pakistani Firms

2017 ◽  
Author(s):  
Muhammad Anwar
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Management Practices ◽  
Financial Risk Management ◽  
Financial Firms

Personal Financial Risk Management Practices among Households in Riyadh, Saudi Arabia

2020 ◽  
pp. 171-183
Author(s):  
Masahina Sarabdeen ◽  
Ann Largey ◽  
Noreha Halid ◽  
A.C. Muhammadu Kijas ◽  
Abad Alzuman
Keyword(s):  
Risk Management ◽  
Saudi Arabia ◽  
Financial Risk ◽  
Management Practices ◽  
Financial Risk Management

scholarly journals FINANCIAL RISK MANAGEMENT STRATEGIES AND THE GROWTH OF MICROFINANCE SECTOR IN KENYA

2017 ◽  
Vol 2 (1) ◽  
pp. 23-53
Author(s):  
Dr. James Rurigi Njuguna ◽  
Prof. Roselyn Gakure ◽  
Dr. Anthony Gichuhi Waititu ◽  
Dr. Paul Katuse
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Management Practices ◽  
Management Strategies ◽  
Credit Risk Management ◽  
Financial Risk Management ◽  
Risk Management Strategies ◽  
External Sources ◽  
Internal Sources ◽  
The Relationship

Purpose: The purpose of this study was to investigate how financial risk management strategies lead to growth of MFI sector in Kenya.Methodology: The study adopted a correlation survey research design. The population of this study was fifty seven (57) MFIs. The sampling frame was the list of MFIs provided in the AMFI website www.amfikenya.com. A sample of thirteen (17) MFIs was selected using the random sampling approach. A questionnaire and an interview schedule were the main data collection tools. Qualitative data was analyzed using content analysis whereas the quantitative data was analysed using Statistical Package for Social Sciences (SPSS) where descriptive and regression analysis were conducted to determine the relationship between enterprise risk management strategies and growth of MFIs.Findings: The findings indicated that MFIs had effective financial risk management strategies such as effective credit risk management practices, liquidity risk management practices, interest risk management practices and price risk management practices. In particular, MFIs took into consideration the conditions, characters, capacity, collateral and capital of borrowers. Strict debt collection practices were widely adopted by MFIs. In addition, the concept of Know Your Customer (KYC) policy, seem to have been adopted by MFIs. The relationship between financial risk management strategies and growth was positive and significant. It also shown that sources of funds for MFIs include external sources and internal sources and the most frequently used source of funds are bank loans. The use of banks loans may present various risk exposures to MFIs, the most significant being interest rate risk. However, the ability of MFIs to source funds from various sources indicates that MFIs can apply the pecking order by first exploiting internal sources of funds since they present a lower financial risks and then move on to external sources. However, despite the financial risk exposure accompanied by leverage from external sources, MFIs may also benefit as they may experience higher growth driven by the leverage. It was also found that MFIs had put in place a number of good practices that had emerged to promote responsible and inclusive lending. These include loan size limits, standardized (simple) loan terms, zero tolerance on delinquency, group-based lending. This finding implies that MFIs have put in place effective credit risk management policies which are part of an overall financial risk management strategy. The existence of effective financial risk management practices may have influenced the growth of MFIsUnique contribution to theory, practice and policy: The study recommends that the MFIs to continue practicing effective financial management practices as this would improve the growth of MFIs.

1998 Wharton Survey of Financial Risk Management by US Non-Financial Firms

1998 ◽  
Vol 27 (4) ◽  
pp. 70 ◽  
Author(s):  
Gordon M. Bodnar ◽  
Gregory S. Hayt ◽  
Richard C. Marston
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Financial Risk Management ◽  
Financial Firms

scholarly journals Impact of Financial Risk Management Practices on Financial Performance: Evidence from Commercial Banks in Botswana

2019 ◽  
Vol 6 (1) ◽  
pp. 25
Author(s):  
Sathyamoorthi C. R. ◽  
Mogotsinyana Mapharing ◽  
Mphoeng Mphoeng ◽  
Mashoko Dzimiri
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Interest Rates ◽  
Commercial Banks ◽  
Financial Risk ◽  
Management Practices ◽  
Return On Assets ◽  
Financial Risk Management ◽  
Return On Equity ◽  
Total Debt

The study examined the impact of financial risk management practices on the financial performance of commercial banks in Botswana. The study used Return on Asset and Return on Equity to measure financial performance. Inflation, Interest rates, total debt to total assets, total debt to total equity, total equity to total assets and loan deposit ratios were used as proxies for financial risk management. The research population was all the 10 commercial banks in Botswana and the study covered a period of 8 years from 2011 to 2018. This descriptive study sourced monthly secondary data from Bank of Botswana Financial Statistics database. Descriptive statistics, correlation and regression analyses were applied to analyze the data. The results from regression analysis showed that interest rates had a negative and significant impact on return on assets and on return on equity. On the other hand, total debt to total assets showed a negative and insignificant effect on return on assets. However, total debt to total assets, revealed a positive and insignificant effect on return on equity. The loan deposit ratio indicated a negative and significant impact on return on assets and on return on equity. Findings suggest that banks should strike a proper balance between financial risk management practices and financial performance by engaging in appropriate market, credit, and liquidity risk management practices that will ensure safety for their banks and yield positive profits.

scholarly journals CHALLENGES AND PATHWAYS TO IMPROVE COMPANY’S FINANCIAL MANAGEMENT BY RISK MINIMIZATION

2019 ◽  
Vol 131 (1) ◽  
pp. 49-57
Author(s):  
Olena V. Arefieva ◽  
Iryna M. Miagkyh ◽  
Antonina M. Yashchuk
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Financial Risk ◽  
Management Practices ◽  
Risk Minimization ◽  
Financial Loss ◽  
Financial Risk Management ◽  
The Government ◽  
Business Entities ◽  
The Impact

This paper seeks to explore the essence of financial activity and its principal objectives in the process of business functioning as well as the effects from changes in the capacity and structure of the company's equity and attracted capital. The study provides insights on the impact of financial management practices on the overall company performance and payment of financial liabilities to the government or other business entities along with identifying the key problems and barriers hindering successful development of modern enterprises. The nature of financial risk arising in the process of financial activities or financial transactions has been revealed. It is argued that the given classification of financial risks (systematic (market) / unsystematic (specific) risks) enables to take timely and relevant risk elimination or risk reduction measures, in particular, deploy risk mitigation methods to those risks which cannot be avoided. The purpose of financial risk management is to minimize financial loss. The paper offers an overview of the factors that negatively affect a company’s financial performance and discusses the types of risks that inhibit company’s good performance and further growth. The study findings suggest the priority areas in financial risk management and discuss the risk management strategies by disclosing the types of company financial stabilization mechanisms (operational, tactical and strategic), along with presenting the methods for financial risk minimization as well as a financial toolkit to enhance the company’s risk management policies to prevent possible negative implications.

The relationship between financial risk management and succession planning in family businesses

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George Mihaylov ◽  
Ralf Zurbruegg
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Succession Planning ◽  
Financial Risk ◽  
Management Practices ◽  
Critical Role ◽  
Family Businesses ◽  
Financial Risk Management ◽  
Content Type ◽  
The Relationship

PurposeThis article examines the relationship between financial risk management and succession planning in family businesses. Motivated by the Theory of Planned Behaviour, we hypothesize that the use of professional risk management practices is associated with an increased likelihood that businesses adopt professionalized approaches to succession planning. We then investigate if succession planning professionalization is, in turn, positively related to the financial performance of family businesses.Design/methodology/approachWe apply binary probit and ordered dependent variable regressions to unique data generated from a survey sample of Australian family businesses. To check the robustness of our results to potential endogeneity concerns we apply difference tests to propensity score matched sub-samples from our original cohort of respondents.FindingsThe results show that, in contrast to verbal or absent succession arrangements, formal written succession plans are both positively associated with the use of financial risk management practices and with superior financial performance in family businesses.Originality/valueOur arguments and findings suggest that active financial risk management provides a platform for planning succession in family businesses, and that this links with improved short-term financial performance. In light of the critical role that succession plays in ensuring long-term business sustainability, our findings provide important and novel insights into the conditions under which family businesses are most likely to use formal professionalized succession planning.

scholarly journals Assessing financial risk management in local governments

2021 ◽  
Vol 2 (4) ◽  
pp. 10-23
Author(s):  
Tamer Aksoy ◽  
Yunus Emre Asan
Keyword(s):  
Risk Management ◽  
Local Governments ◽  
Financial Risk ◽  
Management Practices ◽  
Financial Statements ◽  
Financial Risks ◽  
Counterparty Risk ◽  
Financial Risk Management ◽  
The Impact ◽  
Budget Revenue

The purpose of this study is to examine the impact of the financial risks local governments are exposed to within the scope of financial risk management practices. ?stanbul Metropolitan Municipality (?MM) was selected for this study because it is the largest local government with the highest budget. ?n the study, the development of financial risk performance of ?MM between the years 2008-2018 was examined in the light of the risks ?MM is exposed to. The main results regarding the risks faced by ?MM during the period are as follows: Financial data obtained from the financial statements of ?MM were used to examine the performance of listed risks& effects they have on the budget of ?MM. The results indicate that (i) risk of Dependence on Shares from the central budget revenue; (ii) ?MM was directly dependent on the central budget in terms of revenues, so in this period, the risk of dependency was high in terms of counterparty risk.

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