IMPACT OF RISK MANAGEMENT STRATEGIES ON FINANCIAL PERFORMANCE: A SYSTEMATICE REVIEW OF THE LILERATURE

Abstract

Based on the formulation of the problem that has been made, the objectives of this study are to determine the research objectives, measure the success of a company's financial performance, determine the impact of risk management on financial performance, describe the effect of risk management on the financial performance of banks in Indonesia, and improve the company's financial management strategy that can improve financial performance. This study analyzes the impact of risk management on the company's financial performance. The period of years used in analyzing this research was taken from 2018 to 2023. Research was conducted to determine the impact of risk management on financial performance. The number is certainly very large because it comes from different sources, references, and others. Researching everything will certainly be difficult and even if it can it will take a long time. So the researcher only took a few samples, namely 25 samples from 200 populations. Which references are obtained from publish or perish and google schooler. This study uses quantitative methods because the problem under study is quite complex and enthusiastic so that the data obtained is found using a simpler method, namely literature review. Based on the results, it can be concluded that risk management affects financial performance where the impact of implementing company risk management can reduce the risk of bankruptcy and increase company value. Then, good risk management can help companies deal with risks that arise suddenly and minimize their negative impact on financial performance. Furthermore, in improving the company's financial performance can be done by increasing operational efficiency, managing cash flow well, diversifying revenue sources, optimizing capital structure, increasing transparency and accountability.