Feng Yuanru. The impact of risk management on the financial performance. Master's Degree(International Business Management). Siam University. Library and Information Resource Center. : มหาวิทยาลัยสยาม, 2567.
The impact of risk management on the financial performance
Abstract:
In recent years, banks have faced various risks such as credit risk, market risk, operational risk, etc. As a major bank in Thailand, Bangkok Banks strategies for coping with economic fluctuations and risk management measures can provide useful information on financial risk management. Against this backdrop, it is of great significance to study the risk management of Bangkok Bank. Therefore, this study aimed to explore the impact of Bangkok Banks risk management practices on financial performance. The research objective were: 1) To explore the impact of credit risk on the financial performance of Bangkok Bank. 2) To explore the impact of liquidity risk on the financial performance of Bangkok Bank.
This study employed the quantitative research methods and the risk management theory, using a questionnaire to collect data from 104 respondents, and found a significant relationship between credit risk, liquidity risk, and the banks financial performance. High credit risk typically leads to an increase in bad debts, which reduces the banks net profit margin and may affect its capital adequacy ratio. Insufficient liquidity may cause the bank to face high-cost financing or asset sales pressure, which in turn affects its financial soundness and profitability.
This study found that: 1) Credit risk has a significant negative impact on Bangkok Banks financial performance. 2) Liquidity risk also has a negative impact on financial performance. These findings highlight the importance of effective risk management practices for bank financial performance.
Keywords: risk management, Bangkok Bank, financial performance.
Siam University. Library and Information Resource Center