EFFECTIVENESS OF FINANCIAL RISK MANAGEMENT PRACTICES IN SECURING SUSTAINABILITY IN CORPORATE SPHERES

Abstract

      Financial Risk Management (FRM) is an essential component in securing corporate sustainability by mitigating financial uncertainties and ensuring long-term stability. Organizations today face financial risks such as market volatility, credit defaults, liquidity crises, operational failures, and regulatory changes. This study examines the perceptions, implementation, and effectiveness of FRM practices in corporate sustainability. The research is based on a structured survey conducted among 110 finance professionals, experts, investors, auditors, and students across different industry domains. Data analysis was carried out using One-Way ANOVA and Chi-Square tests to assess differences in perceptions of FRM effectiveness and its impact on corporate sustainability.

The findings demonstrate how adopting FRM improves investor confidence, regulatory compliance, and financial resilience, all of which contribute to business sustainability. Full implementation is hampered by issues including lack of experience, financial limitations, and change aversion. In order to improve business sustainability, the report stresses the integration of ESG considerations into risk management and the necessity of sophisticated risk forecasting tools, organised FRM frameworks, and ongoing staff training.