Effect of Risk Management Practices on Banks Performance Moderating Role of Managerial Expertise as a Competitive Edge


Volume 16 Issue 1 2020


Waqas Ali
Limkokwing University of Creative Technology.

Shujahat Ali
Mirpur University of Science and Technology.

Shahid Mehmood
Mirpur University of Science and Technology.

Abstract The main aim of this research study is to determine the effect related to risk management practices on a bank’s performance in presence of managerial expertise. Expertise and low overheads are known to be an advantage on competitors in the market. In this study, we propose to use managerial expertise as a competitive force to drive forward the ventures in the industry. Banking is known to be an intensely competitive industry in the business globe. It greatly requires risk management and performance enhancement managerial expertise. The random method was utilized for data collection through summated scale on five Liker points. Data collected from 70 operational managers, branch managers, and senior risk managers of the bank. This study utilized reliability analysis, correlation, and regression analysis by using SPSS v.26. Results illustrated that effective risk management practices significantly influence the performance of banks with the moderating role of expertise based on managerial capabilities. This study prone to some limitations foremost inadequate sample size and cross-sectional study which influences the generalization of the study, root cause of small sample size is a limited number of banks in Azad Kashmir. Moreover, this study recommends to bankers need to pay attention to risk management practices as well as managerial expertise to improve performance of banks and achieve competitive advantage by using that managerial expertise.
Keywords Risk Management, Managerial Expertise, Bank’s Performance, Risk Management Practices
Year 2020
Volume 16
Issue 1
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification D81, G32, G21, G24, E58
DOI http://dx.doi.org/10.46745/ilma.jbs.2020.16.01.07
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2416-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Type of Review Double Blind Peer Reviewed
Format PDF
Paper Link http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/16.1/1.pdf
Page 88-100
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