Risk Assessment
2 articles filed under this keyword.
Effect of Internal Control on Financial Performance
Hawkar Anwer Hamad, Naji Afrasyaw Fatah, Hariem Abdullah
This study is an attempt to empirically investigate the effect of internal control on financial performance. The study selected the banking sector in an emerging economy, specifically the Kurdistan Region of Iraq. Effective internal control systems, encompassing policies, procedures, and risk mitigation, contribute to accurate financial reporting, operational efficiency, and investor confidence, thereby positively influencing a bank’s financial performance. The study relies on evidence from the Kurdistan region. The Kurdistan Region's banking sector encountered issues with its utilization and funding methods. Using internal control will ensure that management and workers adhere to their responsibilities and strive to enhance the success of the banking sector in the Kurdistan Region of Iraq, based on the lessons learned. We conducted regression analysis on the seventy responses using SPSS 26. The results showed that there is a positive relation between financial performance and the control environment, control activities, and internal risk assessments.
Volume 10 · Issue 4 · December 2023Operational Risk Assessment and Its Role in Mitigating Damages in Commercial Banks: An Analytical Study of Expert Opinions in the Kurdistan Region - Iraq.
Shakhawan Babakr Hassan, Halmat Rasol Smiel
The aim of this study is to measure and analyze operational risks and identify the most important causes of operational risks in banks in the Kurdistan Region, based on the opinions of experts in this field. Operational risks affect all banking services and operations, such as internal systems, external events and human factors, which can cause significant losses for banks. Therefore, banks need to adopt evolutionary approaches to competition and risk management. To conduct the research, a selection of banks operating in the Kurdistan region was chosen as a case study area to identify the most significant causes of risks in banks. In order to achieve the aim of the study, the Analytic Hierarchy Process (AHP) methodology was used, relying on (SPSS.V.22) software as one of the standard economic methods for analyzing information obtained from a questionnaire administered to selected banks operating in the Kurdistan Region - Iraq. The study found a significant inverse relationship between operational risk assessment and the reduction of harm in commercial banks. This means that the higher the operational risk standards adopted, the lower the likelihood of injury in banks. Additionally, most banks have a plan for identifying and defining operational risks, and that many of the respondents confirmed the presence of operational risk definition and identified in the bank's approved plan for managing operational risks by the board of directors. This indicates that banks recognize the importance of identifying and managing operational risks as part of overall risk management. Data analytics and results should help increase this awareness and improve business risk management processes and procedures.