ISSN: 2225-8329
Open access
The study aims to find the impact of strategic flexibility on financial risks in Iraqi commercial banks. This study used the quantitative approach. Historical data were used to measure financial risks for the period from 2005 to 2023. While primary data represented by the questionnaire were adopted to measure strategic flexibility. The results of this study concluded that strategic flexibility negatively affects financial risks in general. It is also has a negative effect on liquidity risks in Iraqi commercial banks. However, it does not have effect on the exchange rate risk, credit risks and interest rate risks. The results of the study demonstrate the importance of strategic flexibility in reducing financial risks. This study focused on Iraqi commercial banks only. Future studies can focus on other markets and sectors. The implications indicate that banks need to be rational when making decisions regarding the strategy followed to reduce financial risks. In addition, Iraqi commercial banks should be concerned and committed to applying strategic flexibility to achieve the desired goals. The originality of this study lies in providing insight into the importance of strategic flexibility in reducing financial risks. The results of this study are important for shareholders, managers and investors
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