Abstract
IntroductionThe investment process is one of the pillars of growth in the economy of any country so the firms trying to search for investments that operate efficiently and high productivity at the lowest possible risk and so it was necessary to focus on the risks and try to find equilibrium between return and risk in the light of available resources equation. The financial system in the economy of any country consists of financial and economic institutions, fiscal and monetary markets, restrictions and regulations. The important financial institutions in the Sultanate of Oman and engaged in a prominent role is the banking sector. Banks is explain the relationship between money providers and requesters, so start saving deposits and then relends it to others to retain the profit margin and the banks are an important source of growth in the economy of any country. The good financial position reflect a good profitability owned by the bank and the result of a liquidity was employed optimally in safe investments where the bank stay in the market and rival strongly depends on the extent of being aware of the risks surrounding it . So if a strong financial performance has been positively reflected on the hide various risks and thus banks must keep a balance between liquidity and investment ratios for the purposes of profitability and at the same time the banks that you make alignment between current liabilities and assets traded in order to exit a net positive working capital (Naser Ali, 2013).The process of creating a market value or increase shareholder wealth does not come easy way and to achieve this the banks keeps the percentage of reasonable and appropriate risk in its operations as if the financial performance of the bank is in the defect as a result of operations may be adversely reflected on the performance in the long term and thus increase of the potential risks of the company was threatening the capital or funds deposited in the accounts of depositors. Banks currently maintains a variety of ways to measure risk, especially with regard to self-risk assessment system. If find that weak financial performance on the general level of the bank may be due to the presence of risk in operations which requires correction within a specific and clear path (Rompho, 2011). The continuity, success and further improvement of its performance in the market depend on the company's ability to surrounding risk management and its dependence on plans that are consistent with its goals (Al-Tamimi and Al-Mazrooei, 2007). The efficiency of liquidity management exercise a role in the survival of the institutions and gain a competitive advantage Sardakis et al. (2007), also liquidity management in the success of small businesses is the ability of the administration to deal with the risks, especially cash flows and daily commitments factor (Collis and Jarvis, 2000). That risk management of companies as an efficiently lead to the achievement of value for the company and is working to maximize shareholder wealth (Calandro and Lane, 2006).The banking system has an important role in the financial system so that is part of the financial markets and working with each other to provide services where that bank failures extends to the financial and economic system of the state failure (Kumbirai & Webb, 2010). The banking system must keep up with technology constantly so that can compete banks in the market and reduce the risk, especially when the entry of foreign banks into the domestic market, or as noted recently after a period of global financial crisis entry Islamic banks, which had a clearly, the positive effect on performance, which became necessarily adopt the ideas or the Islamic methodology in the granting of credit as a safe way of thinking by many foreign banks. Banks also always tried to think of how to exploit the technology as a way to reduce the risk in terms of the introduction of electronic cards and the internet as a quick service to customers, which achieves satisfactory of customers, which is reflected in the financial performance and thus reflected the risks (DeYoung, 2001). …
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