Risk management and strategic improvement of corporate sustainability for multinational companies

Abstract

Risk management which occurs everywhere in the realm of finance allows organizations attempt to prepare for the unexpected by minimizing risks and extra costs before they happen. This is done by implementing a risk management plan and considering the various potential risks or events before they occur. Descriptive statistics using a frequency distribution and percentage distribution were used to analyse the data gotten from five multinational companies in Saudi Arabia. Chi-square (X2) test was also used as the statistical tool to test for the hypothesis. The study shows that risk identification, risk evaluation and analysis, risk policy implementation and risk prevention are more efficient and influential factors to consider in contributing to the financial risk management practices of many multinational organizations. In pursuit of corporate sustainability, multinational companies are thus advised to put more attention on these factors in implementing risk management plans.