alexa Risk Management Techniques and Financial Performance of Insurance Companies
ISSN: 2472-114X

International Journal of Accounting Research
Open Access

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Research Article

Risk Management Techniques and Financial Performance of Insurance Companies

Kokobe SA* and Gemechu D

Commercial Bank of Ethiopia, Ambo University, Ethiopia

*Corresponding Author:
Kokobe SA
Commercial Bank of Ethiopia
Ambo University, Ethiopia
Tel: 251112363164
E-mail: [email protected]

Received Date: March 11, 2016; Accepted Date: April 29, 2016; Published Date: May 02, 2016

Citation: Kokobe SA, Gemechu D (2016) Risk Management Techniques and Financial Performance of Insurance Companies. Int J Account Res 4:127.doi: 10.4172/2472-114X.1000127

Copyright: © 2016 Kokobe SA, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

 

Abstract

Risk if not well managed could lead to collapse for most organizations especially those whose core business deals with day to day handling of risk. This involves identifying and analyzing risks, developing and implementing risk handling techniques and monitoring the progress of these in order to avoid and/or reduce the impact of risk on the financial performance of the firm. The study used both primary and secondary data. Primary data was collected through questionnaires and Secondary data was collected from yearend financial report of the selected company. The result from regression analysis shows that risk management practice and financial performance are not correlated. This opens a door for other problem on the application of the management techniques.

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