Article | Open Access | Published: 21 July 2020
Effect of Risk Management Practices on Banks Performance Moderating Role of Managerial Expertise as a Competitive Edge
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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
Publisher:
ILMA UNIVERSITY
Published:
21 July 2020
Issue:
Issue 1 : Volume 16
E-ISSN:
2409-6520
P-ISSN:
2414-8393
This is an open access article distributed under the terms of the Creative Commons Attribution CC BY 4.0 license, which permits any use, distribution, and reproduction of the work without further permission provided the original author(s) and source are credited.