The Role of Financial Risk Management in Improving The Profitability of Commercial Banks: Case Study Saudi France Bank
Authors: Abdullah Al-Hawas Fahd 
Published: January 2025

The aim of this study is to show the impact of financial risk management on the profitability of the Saudi French Bank, and the study relied on the descriptive analytical approach. The study population consisted of employees of the Saudi French Bank and through the method of simple random sample, the number of the sample reached 100 individuals. The study tool was the questionnaire. The results of the study found: the existence of a very high level of risk management in its dimensions (credit risk, liquidity risk, efficiency of the use of funds) in the Saudi French Bank and the high level of profitability in the Saudi French Bank, as well as the presence of a statistically significant impact of financial risk management on the profitability of the Saudi French Bank at the level of significance (a<0.05) and the existence of a direct correlation between the two variables and the value of the correlation coefficient was 0.662 and the hypothesis (H1) was accepted, which states that there is a statistically significant effect of the management of Financial risks on the profitability of the Saudi French Bank It was found that the greater the level of financial risk management by 1%, the greater the level of profitability of the Saudi French Bank by 0.326%. As well as the existence of a statistically significant effect of credit risk management on the profitability of the Saudi French Bank at the level of significance (a<0.05) and the existence of a direct correlation between the two variables and the value of the correlation coefficient 0.506 and the hypothesis (H1) was accepted, which states that there is a statistically significant impact of credit risk management on the profitability of the Saudi French Bank and it was found that the higher the level of credit risk management by 1%, the greater the level of profitability of the Saudi French Bank by 0.658%. It was also found that there was a statistically significant effect of liquidity risk management on the profitability of the Saudi French Bank at the level of significance (a<0.05) and the existence of a direct correlation between the two variables and the value of the correlation coefficient was 0.463 and the hypothesis (H1) was accepted, which states that there is a statistically significant impact of liquidity risk management on the profitability of the Saudi French Bank, and it was found that the greater the level of liquidity risk management by 1%, the greater the level of achieving the profitability of the Saudi French Bank by 0.551%. Based on the results of the study, it recommended the following: the need to work on providing training programs and courses for employees of the Saudi French Bank to increase their capabilities to manage financial risks of all kinds, the need to pay attention to providing all the needs and capabilities through which the highest possible profitability rates can be achieved in the Saudi French Bank, and the need to pay attention to providing the appropriate work environment in all financial institutions in the Kingdom of Saudi Arabia, which contributes to increasing performance levels and achieving the required efficiency and effectiveness.

Keywords: Financial risk management – Profitability of commercial banks – Saudi France bank