The Role of Financial Risk Management in Enhancing Financial Sustainability "An Exploratory Study of the Opinions of a Sample of Employees at Al-Rasheed Bank / Al-Karma Branch in Maysan Governorate"

Abstract

This research focuses on analyzing the role of financial risk management in supporting and enhancing financial sustainability in banks operating in Maysan Governorate. An analytical study was conducted with a sample of 139 employees from branch departments and specialized departments in finance, risk, and compliance. The study adopted a descriptive-analytical approach, and SPSS software was used to conduct appropriate statistical analyses, including reliability tests, correlation coefficients, and multiple linear regression analysis. The research was based on four dimensions of financial risk management: the strategic dimension, the financial dimension, the political dimension, and the economic dimension. Regarding financial sustainability, it was assessed across three main dimensions: the temporal dimension, financial stability and solvency, and the institutional dimension. The results of the reliability test using Cronbach's Alpha coefficient showed that all questionnaire axes had a high degree of reliability, with alpha values ranging between 0.865 and 0.868, indicating strong internal consistency among the variables. Descriptive statistics showed that employees perceived the importance of implementing effective risk management to be moderate to high, with financial sustainability considered a prominent strategic objective for banks in the governorate. Based on Pearson's correlation coefficient analysis, a significant positive correlation was found between financial risk management and financial sustainability at a significance level of 0.01, demonstrating that improved risk management directly leads to enhanced financial sustainability. Furthermore, multiple linear regression analysis revealed that the different dimensions of financial risk explain 63% of the variance in financial sustainability levels (R² = 0.63), indicating the effectiveness of the risk management model in predicting the level of financial sustainability. The results showed that liquidity and operational risks have the greatest impact on financial sustainability, followed by credit and then market risks. The research concluded that the effectiveness of risk management depends on the quality of available financial information, the level of specialized technical training, and the presence of advanced technological systems to support monitoring and early warning. The study concluded with key recommendations, including strengthening the risk management structure within banks, developing analytical and forecasting tools and methods, expanding the use of financial technology (FinTech), and linking risk management plans to long-term strategic plans to achieve the required balance in financial sustainability for banks.