Measuring the effectiveness of institutional risk management practices in supporting financial sustainability: Evidence from Saudi Bank

Measuring the effectiveness of institutional risk management practices in supporting financial sustainability: Evidence from Saudi Bank | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Measuring the effectiveness of institutional risk management practices in supporting financial sustainability: Evidence from Saudi Bank Salih Hamid Adam, Nasareldeen Hamed Ahmed Alnor, Ebrahim Mohammed Al-Matari, and 2 more This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6405708/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This paper aims to develop a model that links indicators of the effectiveness of institutional risk management practices with the achievement of financial sustainability, in the context of the recent changes and circumstances witnessed in the Saudi business environment. For businesses and financial institutions, achieving financial sustainability is crucial, particularly in view of growing economic unpredictability and a wider range of risks. This study looks at how the Enterprise Risk Committee (ERC) can successfully identify, evaluate, and mitigate risks in order to support financial sustainability. Additionally, it looks at how the ERC influences strategic decision-making, corporate governance, and regulatory compliance, which in turn affects important financial performance metrics including profits per share (EPS), return on equity (ROE), and return on assets (ROA). The study examines data from ten banks using a descriptive analytical approach to evaluate the connection between financial sustainability and ERC attributes including committee size, meeting frequency, and member independence. The findings emphasize the significance of proactive risk management in bank governance by showing a strong correlation between ERC effectiveness and financial sustainability. The article includes suggestions for improving the efficacy of the ERC to guarantee long-term financial sustainability as well as actual evidence on the importance of the ERC in boosting financial resilience. Business and commerce/Business and management Business and commerce/Finance Social science/Finance Enterprise Risk Committee Financial Sustainability Risk Management Corporate Governance Earning per share Return on Assets Return on Equity Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6405708","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Article","associatedPublications":[],"authors":[{"id":464535035,"identity":"d5973e28-e390-478e-a48e-ea6e9da90963","order_by":0,"name":"Salih Hamid Adam","email":"","orcid":"","institution":"Taif University","correspondingAuthor":false,"prefix":"","firstName":"Salih","middleName":"Hamid","lastName":"Adam","suffix":""},{"id":464535036,"identity":"9372e160-32bd-4a6a-9300-b172cc956e24","order_by":1,"name":"Nasareldeen Hamed Ahmed Alnor","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAAz0lEQVRIiWNgGAWjYDACCQbGAyCanwFEsRGnBayWQbKBZC0GYJIYLebSzQcOF7bZ5BsfPGPA8KHsMIN8+wH8WiznHEs4PLMtzXLbgTMGjDPOHWYwOJOAX4vBjRyDw7xthw3MgFqYgQwGAwaCWvI/gLUYNwC1/AVqke9/QNAWBrAWAwagFkagFoYbBG1JMzjMcy7NQOLAsYKDPefSeQxuELQl+eFjnjIbA/4Zhzc++FFmLSffT8AWBJA4AI4gHmLVAwF/AwmKR8EoGAWjYEQBAGAgSYKO9PG4AAAAAElFTkSuQmCC","orcid":"","institution":"Al Jouf University","correspondingAuthor":true,"prefix":"","firstName":"Nasareldeen","middleName":"Hamed Ahmed","lastName":"Alnor","suffix":""},{"id":464535037,"identity":"6707d079-cf3d-472f-9fc2-465f0cb1e217","order_by":2,"name":"Ebrahim Mohammed Al-Matari","email":"","orcid":"","institution":"Al Jouf University","correspondingAuthor":false,"prefix":"","firstName":"Ebrahim","middleName":"Mohammed","lastName":"Al-Matari","suffix":""},{"id":464535038,"identity":"71bd494e-047f-434f-9932-91212b1ae373","order_by":3,"name":"Ibrahim Ahmed Elamin Eltahir","email":"","orcid":"","institution":"Al Jouf University","correspondingAuthor":false,"prefix":"","firstName":"Ibrahim","middleName":"Ahmed Elamin","lastName":"Eltahir","suffix":""},{"id":464535039,"identity":"f9f4573d-feb7-4836-b0bf-2c0720503e46","order_by":4,"name":"Mozamil Awad Taha","email":"","orcid":"","institution":"Taif University","correspondingAuthor":false,"prefix":"","firstName":"Mozamil","middleName":"Awad","lastName":"Taha","suffix":""}],"badges":[],"createdAt":"2025-04-08 18:08:10","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-6405708/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6405708/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":91618309,"identity":"e19885ce-32c5-4e9d-8c4b-77593c677c64","added_by":"auto","created_at":"2025-09-18 11:02:39","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":562252,"visible":true,"origin":"","legend":"","description":"","filename":"anonymisedmanuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6405708/v1_covered_65a60c88-adfe-498a-b7a2-468976537b1e.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Measuring the effectiveness of institutional risk management practices in supporting financial sustainability: Evidence from Saudi Bank","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Enterprise Risk Committee, Financial Sustainability, Risk Management, Corporate Governance, Earning per share, Return on Assets, Return on Equity","lastPublishedDoi":"10.21203/rs.3.rs-6405708/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6405708/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis paper aims to develop a model that links indicators of the effectiveness of institutional risk management practices with the achievement of financial sustainability, in the context of the recent changes and circumstances witnessed in the Saudi business environment. 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