Risk Management and Financial Decision-Making in Managerial Finance

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Risk".

Deadline for manuscript submissions: 31 December 2026 | Viewed by 2242

Editors

School of Business, University of Southern Queensland, Springfield Education City, 37 Sinnathamby Blvd, Springfield Central, QLD 4300, Australia
Interests: corporate governance; capital markets; corporate finance; acquisitions; banking and finance
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Guest Editor
School of Management, Swansea University, Swansea, UK
Interests: accounting and finance

Special Issue Information

Dear Colleagues,

The Journal of Risk and Financial Management invites submissions for a Special Issue on “Risk Management and Financial Decision-Making in Managerial Finance”. We seek high-quality theoretical, empirical, and methodological studies that advance our understanding of risk management and financial decision-making. The topics of interest include, but are not limited to, the following:

  • Enterprise risk management and management decision making-Enterprise risk management (ERM) promises to improve decision-making and help organizations avoid wicked problems. It is interesting to explore the diverse areas where ERM can make a positive impact on the corporate decision-making process.
  • Risk management for Small and Medium Enterprise–We need more research that explores the potential benefits for adopting strategic risk management policies for SME owners and potential financial impact of such practices.
  • Artificial intelligence in risk management and financial decision-making process–Research examining the ethical implications of using AI in financial decision-making for both financial and non-financial sector could enhance ethical application of AI in the decision-making process.
  • Sustainability risk management–We need more evidence on how risk management systems relate to sustainability practices. Such issues need reexamination from both theoretical and practical perspective.
  • C-suite approach toward risk-management and financial decision–Research examining the impact c-suite executive make toward promoting a risk management strategy could deepen our understanding on the importance of management style and good governance in risk management.  
  • Theoretical perspective on risk management–The special issue encourages qualitative exploration of risk management and financial decisions in managerial finance.
  • Country level differences in risk management–Cultural differences could shape how corporations deal with risk management. We encourage original research into related issues.

Submissions should address significant challenges and propose innovative solutions at the intersection between risk management and financial decision-making in managerial finance. Both theoretical insights and practical applications are encouraged.

Dr. Syed Shams
Dr. Rashedul Hasan
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 250 words) can be sent to the Editorial Office for assessment.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-anonymized peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Journal of Risk and Financial Management is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1600 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • risk management
  • financial decisions
  • sustainability
  • artificial intelligence
  • governance
  • small and medium enterprises
  • enterprise risk management

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Published Papers (2 papers)

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Research

27 pages, 856 KB  
Article
Risk Capacity Index: A Methodological Proposal for Comprehensive Management in Colombian Solidarity Sector Entities
by María Andrea Arias-Serna, Luis Fernando Móntes-Gómez, María Alejandra Lasso-López and Jhon Quiza-Montealegre
J. Risk Financ. Manag. 2026, 19(8), 577; https://doi.org/10.3390/jrfm19080577 - 2 Aug 2026
Viewed by 244
Abstract
Prudential regulation traditionally evaluates credit, market, and liquidity risks through separate indicators, providing a fragmented assessment of institutions’ financial soundness. This study proposes the Risk Capacity Index (ICR) as an integrated measure of the structural risk-bearing capacity of organizations in the Colombian solidarity [...] Read more.
Prudential regulation traditionally evaluates credit, market, and liquidity risks through separate indicators, providing a fragmented assessment of institutions’ financial soundness. This study proposes the Risk Capacity Index (ICR) as an integrated measure of the structural risk-bearing capacity of organizations in the Colombian solidarity sector. Rather than measuring individual risks in isolation, the proposed framework evaluates the capacity of available equity to absorb aggregate financial exposure by integrating Expected Loss, Value at Risk, and the Liquidity Gap within a single prudential metric. The conceptual design of the ICR is grounded in the notion that equity constitutes the institution’s ultimate loss-absorbing constraint, while its operational specification is developed using supervisory risk measures applicable to cooperative financial institutions. The methodology combines analytical sensitivity analysis with a forward-looking stress-testing framework based on the Prudential Regulation Authority approach. Results demonstrate that the ICR exhibits nonlinear deterioration as aggregate risk exposure increases, with liquidity risk emerging as the principal determinant of financial fragility and the viability threshold. The theoretical contribution of the ICR lies not in replacing existing prudential ratios, but in providing an integrated institution-level measure that jointly relates available loss-absorbing capital to simultaneous exposures across multiple financial risks within a common analytical framework. The proposed index therefore complements established measures of capital adequacy, liquidity resilience, and financial soundness by offering a consolidated perspective on institutional risk-bearing capacity. Full article
(This article belongs to the Special Issue Risk Management and Financial Decision-Making in Managerial Finance)
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20 pages, 557 KB  
Article
The Determinants of Financial Flexibility: Evidence from JSE-Listed Non-Financial Firms
by Joseph Kayiira, Vusani Moyo and Freddy Munzhelele
J. Risk Financ. Manag. 2026, 19(4), 278; https://doi.org/10.3390/jrfm19040278 - 11 Apr 2026
Viewed by 1493
Abstract
Corporate financial policy requires managers to balance financing, investment, and payout decisions while maintaining sufficient financial flexibility to respond to unexpected shocks and investment opportunities. Despite the importance of financial flexibility, limited empirical evidence exists on its determinants in African capital markets. Using [...] Read more.
Corporate financial policy requires managers to balance financing, investment, and payout decisions while maintaining sufficient financial flexibility to respond to unexpected shocks and investment opportunities. Despite the importance of financial flexibility, limited empirical evidence exists on its determinants in African capital markets. Using panel data from 106 non-financial firms listed on the Johannesburg Stock Exchange over the period 2000–2019, this study examines the determinants of financial flexibility. Financial flexibility is identified by comparing actual and predicted leverage and classifying firms with persistent spare debt capacity as financially flexible. The main empirical model is estimated as a random-effects linear probability model with heteroscedasticity-robust standard errors. The results show that financial flexibility is significantly negatively associated with leverage and Tobin’s Q, indicating that firms with higher debt levels and stronger growth opportunities are less likely to preserve borrowing capacity. Retained earnings and financing cost show weak negative associations at the 10% significance level, while dividend payout, profitability, cash holdings, and tangibility are statistically insignificant. The study contributes to the corporate finance literature by providing new evidence from an African emerging market context, incorporating payout policy into the financial flexibility framework, and showing how leverage discipline and growth-related financing demands shape firms’ financial flexibility. Full article
(This article belongs to the Special Issue Risk Management and Financial Decision-Making in Managerial Finance)
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