ASSESSING THE EFFECTIVENESS OF FINANCIAL RISK MANAGEMENT STRATEGIES

Abstract

This study evaluates the effectiveness of financial risk management strategies employed by organizations to mitigate potential losses and enhance decision-making processes. Through a mixed-methods approach, we analyze quantitative data from financial performance metrics and qualitative insights from stakeholder interviews. The findings reveal that proactive risk assessment, diversification of investment portfolios, and the implementation of hedging techniques significantly contribute to minimizing financial volatility. Additionally, the study highlights the importance of regulatory compliance and the role of technology in improving risk management frameworks. The results underscore the necessity for organizations to adopt a comprehensive approach to financial risk management, integrating both traditional and innovative strategies to navigate an increasingly complex financial landscape.