Integrating Risk Management into Global Financial Strategy: Challenges for Multinational Corporations
Year: 2024
Type: article
Abstract: Investing in risk management as part of global financial plans is a fundamental process for MNCs that want to take advantage of the international business climate. The MNCs are exposed to financial uncertainties like exchange rate risk, political uncertainty, and regulatory uncertainties that can dramatically impact their business. The article explains how MNCs can successfully implement risk management in their global finance models. It discusses the regional risk variability, the complexity of financial instruments, and coordination between cultures and regulatory contexts. The paper calls for a common but flexible risk management framework, financial objectives being aligned with risk management, and the deployment of technological solutions to assess risk in real time. Also, it also stresses the need to develop a risk-sensitive corporate culture and to foster greater communication between headquarters and regional locations. The paper concludes by providing suggestions and guidelines for the challenges MNCs encounter when trying to implement risk management into their global financial planning, while maintaining resilience and long-term performance in volatile global markets.
Author: Yintian Yang
Institutions: New York Institute of Technology, Golden Gate University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4405385217