The Inevitability of Financial Risks in Businesses and How to Overcome Them: Saudi Arabia in Focus

Abstract

Financial risk is made up of potential volatility or changes in earnings that differ from participants’ expectations and estimates of these values. This can have both positive and negative impacts depending on the preferences of risk consumers, the investment climate of a nation, especially for developing economies has a great role to play in the level of financial risks that an organization can be exposed to. Even if the best company in the world hires the best managers obtainable in a field to run a company in a country where the stakes are high as regards risk, the company will most likely show signs of financial risks that may just be inevitable. This study carefully analyzed financial risks in businesses with a focus on efficient management in a developing country like Saudi Arabia.