Background: The economic landscape in Zimbabwe has been characterized by persistent financial instability, which has been marked by hyperinflation, currency volatility and limited access to foreign exchange. Despite the critical importance of effective financial risk management in navigating these challenges, many organizations in Zimbabwe lack structured frameworks and tools to adequately assess and mitigate these risks.
Aim: The study aimed to develop a comprehensive framework
tailored to the specific challenges faced by businesses.
Methodology: This study encompasses an in-depth examination
of the financial stakeholders in Zimbabwe, focusing on their roles, challenges,
and contributions to the financial landscape. A qualitative research design was
adopted for this study. Using purposive sampling, the researcher chose 15
important players in Zimbabwe's financial industry in order to conduct
interviews and collect primary data. This includes academics with expertise in
finance as well as professionals employed by banks, regulatory agencies and
investment businesses. Data was analysed using thematic analysis.
Results: Zimbabwe's economic and financial circumstances
present a number of difficulties and factors for financial risk management. Key
challenges Zimbabwean businesses face include economic instability, political
uncertainty, lack of access to finance, foreign exchange risks and regulatory
challenges. The study proposed a comprehensive risk management framework for
Zimbabwean businesses, including risk assessment tools, mitigation strategies,
and monitoring mechanisms. There has to be training, education, and adaptable
methods so that the architecture will still function in the volatile economic
environment of Zimbabwe.
Conclusion: It can allude that incorporating the components
proposed in the framework into risk management procedures can help companies
better recognize, evaluate, reduce and track financial risks in the nation's
distinct economic landscape. Policy recommendations could include creating a
more benevolent regulatory environment that promotes the adoption of
contemporary financial risk management techniques, such as providing tax breaks
or subsidies to businesses that invest in risk management equipment and
training, in order to optimize the framework's usefulness. Further research can
however be required on a larger scale and incorporating other research methods.
Author (s) Details
Noel Marimira
LIGS University, USA and Office No. 126 Longchen Plaza, Belvedere, Harare,
Zimbabwe.
Babandi Ibrahim Gumel
LIGS University, USA and Plot 48 Governor Muazu B. Aliyu Street, Area 7,
Takur GRA, Dutse, Jigawa State, Nigeria.
Please see the book here:- https://doi.org/10.9734/bpi/nabme/v6/4981
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