A Review on the Financial Risk Management and the Impact of Oil Price Volatility Post-Doha Round under the WTO Framework

Goal – research of financial rhysicology from the standpoint of modern theoretical and practical requirements, identification of existing problems in the theory and practice of financial risk management and determination of directions for its further development in order to increase the effectiveness of practical financial management of enterprises in conditions of increased uncertainty of the environment in which they (enterprises) operate. Method. To achieve the goal, analytical studies were performed and scientific methods were used, in particular: content analysis of modern views and positions of domestic and foreign scientists regarding the definition and classification of entrepreneurial, economic and financial risks; the method of system analysis and portfolio factor analysis for structuring and determining the hierarchy in the risk system, a systematic approach in substantiating the unity of strategic, tactical and operational risk management; assessment of quantitative and qualitative methods of financial risk analysis, as well as methods of behavioral economics. The results. Considering the relevance of the topic, the main attention is paid to the analysis of financial rhysicology with an in-depth study of the complex of theoretical, scientific and practical aspects of this topic. The objective prerequisites for the formation and history of the development of financial rhysicology and its scientific connections with other related fields of scientific knowledge have been studied. The content analysis of the publications of domestic and foreign scientists in the field of financial risk management and those related to it made it possible to identify the main problems and unresolved issues that are currently inhibiting the development of financial management. It has been proven that such obstacles include, in particular: the vague definition of the specifics of financial risks and the lack of research into their systemic synergistic relationships with other risks; a certain disregard of the objective relationship between strategic, tactical and operational financial risk management and the absence of indicators of strategic, tactical and operational financial risks adapted to the conditions and features of a specific industry, enterprise, situation, etc.; insufficient development of financial risk assessment methods for the most risky types of activities or financial transactions; the need to develop and apply the manager's risk appetite in financial risk management; inadequate use of outdated, including foreign, methods and models in the methods of financial analysis and bankruptcy forecasting; excessive, sometimes unjustified, use of complex mathematical methods and models in financial risk management, which reduce the effectiveness of risk management. Scientific novelty. The conducted research has a scientific result: a system of portfolios of modern economic and economic risks that affect financial risks; substantiating the combination of strategic, tactical and operational financial risk management as a complete system – the triad of financial management; pragmatically priming transition from classical to neoclassical rhysicology; justification of changes in the methods of financial analysis and bankruptcy forecasting and the principled rejection of the use of outdated and therefore inadequate methods and models; substantiation of the application of elements of behavioral economics, in particular – the risk appetite of the financial manager, when making management decisions, which in the complex made it possible to form a list of the most relevant areas of further scientific research. Practical significance. The results of the study are aimed at improving the practice of making financial decisions and carrying out financial transactions taking into account the existing economic, economic and financial risks; should ensure the validity and improve the effectiveness of the relevant management actions. Key words: risk, classical and neoclassical rhysicology, content analysis, financial risk, financial management, system, financial analysis, risk appetite.

This study explores personal financial risk management practices (PFRMP) among households in Riyadh, Saudi Arabia. Existing financial risk management literature tends to focus more on institution-based financial risk management than household financial risk management. Here we adapt the institutional-based models to a household context. In this framework, the degree to which a household undertakes financial risk management practice is indicated by whether action is stated to have been taken to mitigate against financial risk. PFRMP is modelled as based on the householder’s knowledge of financial risk management, level of financial risk assessed, degree of concern, and personal financial risk control and monitoring. In addition, the relationships between PFRMP and socioeconomic factors of households were investigated using probit analysis. The results show a statistically significant relationship between PFRMP and worry or concern about risk exposures, long-term financial goals, and socioeconomic variables including nationality, income level, and employment status. The results can be used to inform policies aimed at guiding households towards more successful financial risk management practices.

The article analyses the practice of tied aid and draws a comparison to export subsidies both in an economic as well as in a legal sense. Tied aid is a form of development aid granted upon the condition that it is spent according to donor preferences. The legal review concentrates on the consistency of tied aid with the Agreement on Subsidies and Countervailing Measures (SCMA) and Article XVII of the General Agreement on Tariffs and Trade (GATT). Here, many potential breaches of the SCMA are revealed, while a violation of the GATT is less apparent due to the unclear concept of State Trading Enterprises. Many variants of tied aid are found to constitute prohibited or at least actionable export subsidies and no regular development aid. Despite the breaches, no trade dispute involving tied aid has been brought before the WTO's dispute settlement system. The final section analyses the practical obstacles to a precedent and argues that the freedom from regulation of development aid cannot be extended to tied aid, which is guided by protectionist motives.

The motivation for this research was the desire to disclose the social nature of the financial risks of global companies: the authors attempted a scientific explanation of the influence of corporate social responsibility, which is manifested through the preservation and creation of additional jobs, on the financial risks of global companies. The research aims to establish the interdependence between financial risks and sustainable employment in global companies. This goal is achieved using the SEM (structural equation modeling) method based on corporate statistics from the Fortune “Global 500” rankings for 2021–2023. As a result, the consequences of global companies’ CSR (corporate social responsibility) practices in personnel management and financial risk management are modeled and described through quantitative and qualitative patterns. The established regularities proved that for developed and developing countries, the larger the number of employees, the lower the financial risks of global companies—the risk of a decrease in profitability, the risk of loss of profit, and the risk of depreciation of assets. The main conclusion is that there is a close systemic relationship between the financial risks of global companies and their workforce size, suggesting that CSR is key to highly effective financial risk management. A clear distinction between the practices of financial risk management through CSR in developed and developing countries forms the basis of the theoretical significance of the research results. The authors provide recommendations to improve the current practice of financial risk management in global companies by integrating it more closely with personnel management practices, highlighting their managerial relevance. It is proposed that corporate strategies for global companies in developed countries should focus on reducing the risk of declining profitability, as CSR has the most pronounced and consistent impact on this particular financial risk. In developing countries, corporate strategies are recommended to be structured by diversifying the areas of CSR application, with the most promising in financial risk management being the reduction in asset depreciation risk and the reduction in profitability risk. The findings of this research have practical significance because they enhance the predictability of CSR activities of global companies and open up opportunities for highly accurate forecasting of the financial risk implications of ensuring sustainable employment by global companies, considering the specificities of developed and developing countries.

The study deals with the Effect of Financial Risk Management on the Performance of Insurance Companies in Rwanda. It investigates the effectiveness of financial risk management in the performance of insurance companies from March 2015 to March 2019. Specifically, this study identifies the ability of insurance companies to meet their financial obligations; assesses the extent to which insurance companies generate profits, and examines the relationship between financial risk management and performance of insurance companies in Rwanda. To achieve these objectives, this study followed a systematic methodology. It collected secondary data from BNR and used descriptive statistics and multiple linear regression analysis to investigate the relationship which is measured through the eligible determinants, using STATA. The results showed that Rwandan Insurance Companies adopted different financial risk management practices in their operations and that this had a strong effect on their performance. Return on equity (ROE) was found to be the most significant in influencing financial performance positively with (57.089%) variations, followed by net income after taxes with (17.503%) variations, the total expenses were found that did not (variation???). The net premium earned was found to be negatively influencing the financial performance of insurance companies in Rwanda with (15.627%) variations. This study concludes that there is a positive relationship between financial risk management and the performance of insurance companies in Rwanda explained by (96.76%). The study recommends that insurance companies in Rwanda should adopt a different approach to financial risk management to derive greater benefits from their financial management efforts, should also adopt professional skilled personnel and actuaries to perform actuarial work and valuations professionally with expertise. Furthermore, Rwandan insurance companies should follow the current international practice by adopting Enterprise risk management (ERM).

As a new type of transaction model in the Internet + era, e-commerce has been integrated into people's lives and plays an important role. E-commerce business transactions will inevitably be affected by payment behavior, taxation and other factors. With the rapid development of e-commerce companies, the current financial risk management model of e-commerce companies is no longer able to meet the development requirements of the company. Their financial management and financial status are facing major tests, which directly affect the normal operation of the company. It is increasingly important to strengthen the financial risk management of e-commerce companies. This article takes e-commerce companies as the research object and analyzes financial risk management on the basis of big data. It mainly explores how e-commerce companies do a good job in security management, how to establish and improve corporate financial risk management systems, and then improve corporate financial risk identification and management and control capabilities to ensure the healthy and sustainable development of the company. With the emergence of big data, e-commerce companies have risen sharply, so the competition between them has become increasingly fierce. Therefore, their own financial risks are more strictly controlled. Only by strengthening corporate financial risk management can the company be able to promote stable and long-term development. In the context of Internet+, strengthening the research on financial risk management of e-commerce companies has become a key concern of all sectors of society. This is of great significance for preventing corporate financial risks, improving financial management capabilities and comprehensive competitiveness.

Companies face rising complexity in their financial risk management practices because market fluctuations and large amounts of available data have increased in the modern global finance environment. Researchers have presented CB-ADT as an innovative financial risk management approach which merges DT technology with boosting methods to enhance system adaptability while improving accuracy in constantly transforming financial markets. Training occurs through utilization of big data containing historical finance records and marketplace patterns together with present economic metric signals. The CB-ADT model is developed and trained using Python software to process large volumes of historical financial data. The system demonstrated superior performance in key metrics, such as accuracy (97%), precision (96%), recall (94%) and F1-score (96%) showcasing its ability to better identify and mitigate financial risks. This AI-driven approach marks a significant advancement over conventional methods, offering more robust and adaptive solutions for corporate financial risk management. These high-performance indicators highlight the model’s effectiveness in distinguishing between high-risk and low-risk financial scenarios, allowing organizations to make more informed financial decisions. The model's adaptive learning capability enables it to continuously refine its predictions based on new data, ensuring long-term relevance and applicability in an ever-changing financial landscape. This AI-driven approach marks a significant advancement over conventional methods, offering more robust and adaptive solutions for corporate financial risk management. It enhances risk assessment by automating data processing and analysis, reducing human error, and increasing decision-making efficiency. Through machine learning methods financial institutions obtain the capability to detect potential threats ahead of time while maximizing their risk defense approaches. The findings of this research contribute to the growing field of AI-powered financial risk management, paving the way for further advancements in predictive modeling and intelligent decision-making frameworks.

In the wake of the Coronavirus Disease 2019 pandemic, governments globally have intensified efforts to localize the production of pharmaceuticals, leveraging local content requirements and incentives to mitigate supply chain vulnerabilities. This shift has revealed tensions with World Trade Organization (WTO) regulations, notably highlighted in Turkey—Pharmaceutical Products (EU). This article explores policy-based flexibilities within the General Agreement on Tariffs and Trade (GATT) 1994, the Agreement on Trade-Related Investment Measures, and the Subsidies and Countervailing Measures (SCM) Agreement that may justify measures inconsistent with WTO norms under specific conditions. Analysing public health exceptions, national security imperatives, and government procurement policies, the paper elucidates how these flexibilities can be mobilized to support onshoring initiatives while adhering to international trade obligations. The findings suggest a nuanced approach to reconciling public health goals and economic strategies with global trade rules, providing a critical framework for policymakers navigating the complex interplay between national interests and international legal commitments.

An efficient risk management system is the need of time. Managing risk is one of the basic tasks to be done, once it has been identified and known. The risk and return are directly related to each other, which means that increasing one will subsequently increase the other and vice versa. The purpose of this study was to analyze the effect of financial risk management on the financial performance of commercial banks in Kenya. In achieving this objective, the study assessed the current risk management practices of the commercial banks and linked them with the banks’ financial performance. Return on Assets (ROA) was averaged for five years (2008-2012) to proxy the banks’ financial performance. To assess the financial risk management practices, a self- administered survey questionnaire was used across the banks. The study used multiple regression analysis in the analysis of data and the findings were presented in the form of tables and regression equations. The study found out that majority of the Kenyan banks were practicing good financial risk management and as a result the financial risk management practices mentioned herein have a positive correlation to the financial performance of commercial banks in Kenya. Although there was a general understanding about risk and its management among the banks, the study recommends that banks should devise modern risk measurement techniques such as value at risk, simulation techniques and Risk-Adjusted Return on Capital. The study also recommendsuseofderivativestomitigatefinancialriskaswellasdevelop training courses tailored to the needs of banking personnel in risk management.

This research examines the implementation of financial risk management and its impact on improving the financial stability of companies. Financial risk management is a critical process for identifying, assessing, and mitigating risks that may affect a company's financial health. In today’s dynamic and often uncertain market environment, effective risk management is essential for ensuring the long-term survival and profitability of businesses. This study focuses on various risk management strategies employed by companies, such as risk identification, analysis, mitigation, and monitoring, and explores how these strategies contribute to maintaining financial stability. Using a combination of quantitative methods, data was collected through surveys and analyzed using regression analysis to determine the relationship between risk management practices and financial stability. The findings reveal that companies with structured and proactive financial risk management systems exhibit higher levels of financial stability. This research provides valuable insights for business leaders seeking to improve their financial risk management practices and enhance their company's financial resilience.

The WTO agreements, to wit the Agreement on Subsidies and Countervailing Measures (SCM) and the Trade-Related Investment Measures (TRIMs) (applicable in conjunction with the General Agreement on Tariffs and Trade (GATT 1994)), contain prohibitions on the use by WTO Members (Members) of local content requirements (LCRs). LCRs are types of measures that condition the grant of a benefit, by means of subsidies or other kinds of incentives, on the use of domestic products and services. Although the SCM is more explicit as to the prohibition on the use of LCRs, WTO case law is mostly concerned with the analysis of the legality of LCRs in light of Article III.4 of GATT 1994 and Articles 2.1 and 2.2 of TRIMs. In this respect, both the Panel and the Appellate Body (AB) have coherently and consistently found LCRs to be in violation of those provisions. Findings and rulings by the Panel and the AB in Canada Renewable Energy (DS 412, DS 416) and Indian Solar Cells (DS 456), which further restricted the policy space of Members to adopt LCRs, and findings by the Panel in Brazil—Certain Measures Concerning Taxation and Charge (DS472/497) confirmed a jurisprudence constante or unequivocal jurisprudential trends in this regard. This paper sustains that such unequivocal jurisprudential trends are in line with the new global trading system, which requires new tools of industrial or incentive policies that are consentaneous with an economy ever more integrated into the global value chains in which discriminatory measures of LCRs are likely to lose relevance and purpose increasingly.

This presentation provides an epistemological perspective on the Future of Risk Management in Finance. The emphasis is on the limitations in risk management (RM) in finance. It provides an assessment of its validity and scope as well as the methods used in risk managementMany bankers and influential policymakers supported the wave of financial innovations as being very useful for modern RM. However, even before the crisis critical questions were raised about the explosion of innovations. Many financial innovations had the effect of creating links between formerly unconnected players and markets resulting in increased network externalities, more fragility and a systematically higher risk level. The presentation argues that there was an overreliance on quantitative models in modern RM. The underlying conventional risk paradigm clashes with the reality of fundamental uncertainty. The presentation suggests taking the existence of fundamental uncertainty and increased complexity more seriously in practice. This requires a more holistic, flexible and broader approach to RM. More attention should also be given to the qualitative aspects of RM in an enterprise-wide framework.

Risk management has become a key factor in assessing the future performance and effectiveness of management. Now a days many companies deal with foreign players, and receive its return in multiple currencies. They face foreign exchange risk because of sudden&drastic changes in exchange rates, which may cause significantly damaging financial losses from otherwise profitable export sales. Information Technology Company faces this risk higher because major share of its income comes from foreign countries in foreign currencies. It is now important to know: what the status of Indian I.T. companies is, in regards to foreign exposure, what are the instruments they are using for risk minimization, what are the recent statistics of its profit/loss due to Forex transactions and what is the resultant impact on its profitability? This research paper focuses on how selected I. T. companies in India manage their financial risk, who has the authority to establish financial risk management in selected I. T. companies, the ways adopted to support financial risk management policy, preference given to the approaches for dealing with risk, types of financial risks managed, model preferred for measuring credit risk, market risk&operational risk, types of derivative instruments used & resultant impact of financial risk management practices on the overall value&net profit of selected large scale I. T. companies.

In an era marked by economic volatility and global uncertainties, the effectiveness of financial risk management strategies is crucial for businesses, particularly in the financial services industry. This research investigates the relationship between financial risk management (FRM) practices and organizational performance, specifically within the insurance sector in Pakistan. Moreover, the study aims to explore the role of financial risk management in enhancing the performance of insurance companies operating in the Pakistani market. It establishes a research model based on Financial Risk Management (Market Risk, Operational Risk, Liquidity Risk, and Legal Risk) and Organizational Performance (ROE). Researchers surveyed 13 insurance companies in Pakistan using non-probability and convenience sampling techniques and analyzed the data using EViews. The results indicate a significant and meaningful link between organizational success and financial risk management. This study seeks to incorporate best practices and focuses on developing a comprehensive understanding of the influence of organizational performance and financial risk management strategies.

This article analyzes several unresolved issues in World Trade Organization (WTO) law that may affect the WTO-consistency of measures that are likely to be taken to address climate change. How should the WTO deal with environmental subsidies under the General Agreement on Tariffs and Trade (GATT), the Agreement on Agriculture and the Subsidies and Countervailing Measures (SCM) Agreement? Can the general exceptions in GATT Article XX be applied to other agreements in Annex 1A? Are processing and production methods relevant to determining the issue of ‘like products’ in GATT Articles I and III, the SCM Agreement and the Antidumping Agreement and the TBT Agreement? What is the scope of paragraphs b and g in GATT Article XX and the relationship between these two paragraphs? What is the relationship between GATT Article XX and multilateral environmental agreements in the context of climate change? How should Article 2 of the TBT Agreement be interpreted and applied in the context of climate change? The article explores these issues.