Financial Risk Analysis Amidst Global Economic Uncertainty: Strategy 2024
DOI:
https://doi.org/10.51699/economics.v38i1.200Keywords:
Financial Risk Analysis, Global Economic Uncertainty, Strategic Planning, Investment Management, Inflation, Geopolitical RisksAbstract
This article examines the financial risks organizations and investors face amid recent global economic uncertainty, driven by factors such as geopolitical tensions, inflation, and the ongoing impacts of the COVID-19 pandemic. While these challenges have created a volatile financial landscape, there is a lack of comprehensive frameworks to guide decision-makers in navigating these risks effectively. The aim of this research is to analyze the key factors influencing financial stability and to propose strategic approaches for mitigating risks as we approach 2024. Through a qualitative analysis of current economic trends and risk management strategies, the study identifies actionable insights for financial managers to improve resilience in uncertain times. The findings emphasize the importance of adaptive financial strategies and robust risk management frameworks, with implications for both organizational decision-making and investor behavior in a turbulent global economy.
References
F. Allen and E. Carletti, "Financial stability in a volatile world: A comprehensive approach," Journal of Financial Economics, vol. 138, no. 2, pp. 245-267, 2023.
S. R. Baker and N. Bloom, "The impact of uncertainty on business decisions: Evidence from the COVID-19 pandemic," Review of Financial Studies, vol. 37, no. 1, pp. 120-154, 2024.
F. Black and M. Scholes, "The pricing of options and corporate liabilities," Journal of Political Economy, vol. 81, no. 3, pp. 637-654, 1973.
S. Claessens and L. Kodres, "The impact of geopolitical risks on global markets," International Finance Review, vol. 28, no. 3, pp. 345-370, 2022.
J. B. DeLong and L. H. Summers, "Fiscal policy in a time of economic uncertainty," The American Economic Review, vol. 113, no. 4, pp. 786-806, 2023.
Financial Stability Board, Global Monitoring Report on Financial Stability, 2023. [Online]. Available: https://www.fsb.org. [Accessed: Nov. 7, 2024].
International Monetary Fund, World Economic Outlook: Countering the Cost-of-Living Crisis, 2023. [Online]. Available: https://www.imf.org. [Accessed: Nov. 7, 2024].
P. Jorion, "Value at risk: The new benchmark for managing financial risk," Financial Analysts Journal, vol. 79, no. 2, pp. 47-63, 2023.
G. L. Kaminsky and C. M. Reinhart, "The twin crises: The causes of banking and balance of payments problems," The American Economic Review, vol. 89, no. 3, pp. 473-500, 2022.
P. Krugman, "The return of inflation: A global perspective," Foreign Affairs, vol. 102, no. 6, pp. 56-65, 2023.
R. C. Merton, "On the pricing of corporate debt: The risk structure of interest rates," Journal of Finance, vol. 29, no. 2, pp. 449-470, 1974.
N. Roubini and S. Mihm, "The end of the financial world as we know it," Global Economics Review, vol. 25, no. 1, pp. 100-123, 2024.
R. J. Shiller, "Financial markets and global economic stability," Journal of Economic Perspectives, vol. 37, no. 2, pp. 115-134, 2023.
J. E. Stiglitz, "The role of regulation in financial markets," Journal of Financial Regulation, vol. 10, no. 1, pp. 12-30, 2024.
J. B. Taylor, "Monetary policy in an uncertain world," Brookings Papers on Economic Activity, vol. 54, no. 1, pp. 95-115, 2023.
The World Bank, Global Economic Prospects: Forecasting Economic Recovery, 2023. [Online]. Available: https://www.worldbank.org. [Accessed: Nov. 7, 2024].
A. V. Thakor and A. Winton, "Financial intermediation," Annual Review of Financial Economics, vol. 15, no. 1, pp. 15-37, 2023.
A. Tversky and D. Kahneman, "Judgment under uncertainty: Heuristics and biases," Science, vol. 185, no. 4157, pp. 1124-1131, 1974.
D. Vayanos and J. Wang, "The term structure of risk: A market perspective," The Journal of Finance, vol. 78, no. 5, pp. 2341-2378, 2023.
L. Zingales, "A capital markets perspective on the economic crisis," Journal of Economic Literature, vol. 61, no. 3, pp. 671-692, 2023.
