Financial Risk Management Challenges and the Strategic Role of MIS and Accounting in Modern Business Systems
DOI:
https://doi.org/10.60087/jklst.vol4.n4.001Abstract
Financial risk management serves as a vital element for organizational stability which becomes essential for organizations that face multiple regulatory and market and operational uncertainties. Organizations implement MIS together with accounting practices to track and reduce financial risks but their performance and organizational impact need thorough evaluation. This study collected data from 310 professionals who worked in finance and banking and manufacturing and healthcare and retail industries. FRM difficulties together with MIS operations and accounting systems and their combined influence on business results. This study used descriptive statistics to describe participant demographics together with organizational features and employed Pearson correlation and regression analysis to detect connections between FRM, MIS, ACC, INT and BP. The survey results revealed that regulatory compliance at 55.2% and market volatility at 52.6% emerged as the primary financial risk challenges according to the participants. Management information system functions reporting accuracy (59.1%) and real time data availability (57.4%) were identified as the most effective. Pearson correlations revealed that FRM, MIS, ACC, INT and BP share moderate to strong positive connections yet integration stands out as the most influential factor for performance results (r = 0.74, p = 0.01). This study demonstrates that organizations achieve better financial risk management and performance results through effective MIS systems and accounting practices which need to work together as integrated units. Integration of these systems enables management to match risk indicators with performance metrics which leads to better and faster strategic decision-making.
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