An Investigation Of How Financial Institutions In Intergrate Risk Indicators Into Corporate Performance Management

Author

Paidamoyo Tsvere

Title

An Investigation Of How Financial Institutions In Intergrate Risk Indicators Into Corporate Performance Management

Abstract

In today's rapidly changing financial landscape, managing risks has become a critical aspect of corporate performance. Financial institutions, in particular, face a complex and dynamic environment where the consequences of poor risk management can be severe. As such, it is essential for these organizations to integrate risk into their corporate performance strategies. The main objective of the research was to determine the impact of integrating risk indicators into corporate performance using the case of Banc ABC; Zimbabwe. The major issue that gave rise and impelled the researcher is that the companies are experiencing decline in corporate performance due to poor decision making even though they have risk indicators. Other studies conducted on an international level indicated that there was a positive relationship between risk indicators and corporate performance except for a few studies which was in contrast to this thereby motivating the researcher to do this study in Zimbabwe. This study employed descriptive research design. A sample of 44 employees from one companies were selected, 44 questionnaires were distributed. The questionnaires yielded a response rate of 91%. The statistical package used for data presentation and Linear regression analysis was SPSS, the independent variable was risk indicators and the dependent variable was corporate performance. The major findings were that, there was a positive impact on integrating risk indicators into corporate performance in Banc ABC. Other results showed that operational risk indicator is the most risk indicator used and cybersecurity is the most threat. key risk indicators should be reported frequently. The researcher concluded this research by recommending Banc ABC to adjust and adapt in key risk indicators regularly and offer training to the risk management team regularly. In conclusion, the integration of risk into corporate performance is a crucial aspect of financial institutions. By effectively managing risks, these institutions can ensure long-term success and sustainability. Through our investigation, we have gained valuable insights into the various strategies and practices used by financial institutions to integrate risk into their corporate performance. .

Date

2023

Publisher

BUSE

Keywords

Financial Institutions

Risk Indicators

Performance

Management

Supervisor

N/A