Evaluating The Impact of risk management on firm performance in EGX-30 on non-Financial firms

Abstract

Risk management is essential to a company's success because it acts as a barrier to possible dangers and a boost to take advantage of opportunities. Risk and business are closely related. Information on accounting practices, including risk management, is provided through risk reporting. Among the many factors that need to be carefully considered to lower risk is risk management. Leverage and risk disclosure become factors that stand in for risk management. These days, risk management is becoming a crucial concern for businesses. This influences the public's perception of how businesses handle risk as well. Based on that advancement, risk management is being developed. Risk and business will always coexist. Information on accounting practices, including risk management, is provided through risk reporting. Among the many factors that need to be carefully considered to lower risk is risk management (Naibaho & Mayayogini, 2023). Leverage is typically defined as the utilization of borrowed funds to make an investment and earn a return on that investment. A high level of financial leverage increases a company's risk. It has also been observed that the effect of financial leverage is as follows: the higher the amount or point of financial leverage, the greater the expected profit on the company's stock.