This study aims to explore the Iraqi banking sector as an empirical space to understand the effect of strategic financial risk management on the stability of financial commercial institutions. The primary goal is to address a gap in the literature which seeks to pinpoint exactly how the risk identification, evaluation and hedging process strengthens banking resilience to macroeconomic shocks. A descriptive-analytical methodology was used. The primary data were gathered through structured survey questionnaires from 400 financial executives, risk officers and treasury analysts of commercial banks in Iraq by purposive sampling. Empirical data analysis with SPSS was carried out with descriptive statistics, Pearson correlation matrix and simple linear regression models. The estimates revealed clear positive association between multi-dimensional cushions for institutional safety and strict oversight of risks with statistically significant results. The regression models were operationalized to show an outstanding explanatory power of 97.1% to 98.5% and it confirmed that the structural risk control has a huge impact on reducing crisis vulnerability and also contributes for the long-term profitability and viability of the firm. Therefore, this study highlights the need for mandatory institutionalization of digitized risk metrics into overarching boardroom governance supported by rigorous internal compliance audits to protect liquidity positions and public market trust.
Ahmed,M Ali, salah khaleel,M and Khalil,A Abdel. (2026). Financial risk management and its impact on the stability of financial institutions: An applied study on commercial banks in the Iraqi banking sector. AL-Qadisiyah Journal For Administrative and Economic sciences, 28(2), 439-451. doi: 10.39916/qjae.2026.02439451
MLA
Ahmed,M Ali, , salah khaleel,M , and Khalil,A Abdel. "Financial risk management and its impact on the stability of financial institutions: An applied study on commercial banks in the Iraqi banking sector", AL-Qadisiyah Journal For Administrative and Economic sciences, 28, 2, 2026, 439-451. doi: 10.39916/qjae.2026.02439451
HARVARD
Ahmed M Ali, salah khaleel M, Khalil A Abdel. (2026). 'Financial risk management and its impact on the stability of financial institutions: An applied study on commercial banks in the Iraqi banking sector', AL-Qadisiyah Journal For Administrative and Economic sciences, 28(2), pp. 439-451. doi: 10.39916/qjae.2026.02439451
CHICAGO
M Ali Ahmed, M salah khaleel and A Abdel Khalil, "Financial risk management and its impact on the stability of financial institutions: An applied study on commercial banks in the Iraqi banking sector," AL-Qadisiyah Journal For Administrative and Economic sciences, 28 2 (2026): 439-451, doi: 10.39916/qjae.2026.02439451
VANCOUVER
Ahmed M Ali, salah khaleel M, Khalil A Abdel. Financial risk management and its impact on the stability of financial institutions: An applied study on commercial banks in the Iraqi banking sector. AL-Qadisiyah Journal For Administrative and Economic sciences. 2026;28(2):439-451. doi: 10.39916/qjae.2026.02439451
