Risk Management Strategies During the ERA of Global Financial Uncertainty

Abstract

Financial sustainability, particularly in developing economies is a global concern. One key approach to sustainable finances is risk management. Effective risk management contributes to the stability and sustainability of financial systems, markets, and institutions. The purpose of this article is to investigate risk management strategies in the era of global financial uncertainty in Ghana. A quantitative research approach was employed. Both stratified sampling techniques and simple random sampling techniques were used to select 150 respondents. The respondents include 50 employees from five banks (10 each), 50 employees from 5 micro-finance institutions, (10 each) and 50 petty traders. To collect data, a questionnaire was developed containing close-ended questions, structured using a five-point Likert scale. The questions were framed covering three distinct sections such as available risk factors influencing financial institutions and businesses in Ghana, effects of risk factors on financial institutions and businesses, and risk management strategies. descriptive statistics such as Mean, Standard Deviation and Pearson Moment Correlation. The findings indicated that political instability, fluctuating global commodity prices, Exchange rate volatility and cybersecurity threats emerged as available risks affecting financial uncertainties in Ghana. While Political instability exhibits strong negative correlations with microfinance and traders, negative correlations between global commodity price fluctuations and traders signify vulnerability to market shifts. As a recommendation, encouraging innovation and entrepreneurship can unlock new sources of growth and resilience in Ghana's economy.