Risk Management And Its Effects On The Performance …

Abstract

Financial institutions work in conditions in which the future is unpredictable and uncertain, in a world full of danger and uncertainty. Risk management in the capricious and speculative world is all about effective management. Owing to the recent financial disaster and the evolution of the Basel II deal, it is receiving considerable responses. The management of risk therefore remains a crucial and Difficult business function. Study objective of this research was to study relationships among risk management and profitability of Pakistan's financial institutions. Balanced longitudinal data were obtained between 2016 and 2019 from 3 larges banks' annual published financial statements. Pearson correlation and the Panel data regression model were used for evaluation of the data collection. study showed that risk management affects the profitability of all banks.