Navigating Uncertainty: Assessing the Impact of Financial Risk Management on Organizational Performance: Evidence from Insurance Companies in Pakistan

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Published Dec 31, 2023
https://doi.org/10.61506/02.00129
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Vol. 9 No. 4 (2023)

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Raima Adeel
Institute of Banking & Finance, Bahauddin Zakariya University, Multan, Pakistan
Sahibzadi Fatima Saleem
Institute of Banking & Finance, Bahauddin Zakariya University, Multan, Pakistan
Maryam Arif
Institute of Banking & Finance, Bahauddin Zakariya University, Multan, Pakistan
Dr. Shahid Yaqub
Department of Marketing and International Business, Institute of Business Management and Administrative Sciences, The Islamia university of Bahawalpur
Muhammad Zubair Saeed
Institute of Banking & Finance, Bahauddin Zakariya University, Multan, Pakistan

Abstract

In an era marked by economic volatility and global uncertainties, the effectiveness of financial risk management strategies is crucial for businesses, particularly in the financial services industry. This research investigates the relationship between financial risk management (FRM) practices and organizational performance, specifically within the insurance sector in Pakistan. Moreover, the study aims to explore the role of financial risk management in enhancing the performance of insurance companies operating in the Pakistani market. It establishes a research model based on Financial Risk Management (Market Risk, Operational Risk, Liquidity Risk, and Legal Risk) and Organizational Performance (ROE). Researchers surveyed 13 insurance companies in Pakistan using non-probability and convenience sampling techniques and analyzed the data using EViews. The results indicate a significant and meaningful link between organizational success and financial risk management. This study seeks to incorporate best practices and focuses on developing a comprehensive understanding of the influence of organizational performance and financial risk management strategies.

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
[1]
Adeel, R., Fatima Saleem, S., Arif, M., Shahid Yaqub, D. and Zubair Saeed, M. 2023. Navigating Uncertainty: Assessing the Impact of Financial Risk Management on Organizational Performance: Evidence from Insurance Companies in Pakistan. Journal of Policy Research. 9, 4 (Dec. 2023), 76–83. DOI:https://doi.org/10.61506/02.00129.
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