Risk Management Practices of IFIs Vs. CFIs in Pakistan

This is a first of its kind empirical study addressing the unmarked topic of risk management practices (RMPs) of IFIs and CFIs in Pakistan. The study aimed at expanding the existing literature by providing novel empirical evidence. Literature review classified risks faced by both IFIs and CFIs under six categories. The research concludes that credit risk, equity investment risk, market risk, liquidity risk, rate of return risk and operational risk management practices in IFIs are not different from the practices in CFIs and the overall risk management practices of IFIs and CFIs are alike in Pakistan. The study also concludes that a research based in one country cannot be generalized to another country therefore every country must conduct research in its own context. This opens our eyes to the fact that much is unknown about the risk management practices in Pakistani financial system, creating a need for empirical studies for further discoveries to formulate better frameworks and to prevent an impending financial crisis that might be unraveling as you read this book. ¿The revolutionary idea that defines the boundary between modern times and the past is the mastery of risk¿¿