The Role of Hedging and Derivatives Techniques and Fintech Adoption on Financial Risk Management in Saudi Banks

The Role of Hedging and Derivatives Techniques and Fintech Adoption on Financial Risk Management in Saudi Banks

  • Abdulaziz Mohammed Alsahlawi , Department of Finance, College of Business, King Faisal University, Al-Ahsa -31982, Saudi Arabia

Keywords:

Hedging techniques, derivatives techniques, Fintech adoption, financial risk management, effective financial decisions.

Abstract

Recently, hedging and derivatives techniques and Fintech adoption are considered the foremost elements for financial risk management, capturing the attention of academics and policymakers alike. For this reason, the current article seeks to investigate into the impact of hedging and derivatives techniques and Fintech adoption on the financial risk management in banks in Saudi Arabia. The article also analyses the mediating role of effective financial decisions at the nexus of hedging and derivatives techniques, Fintech adoption and financial risk management in the context of Saudi Arabian banks. The current study adopts the questionnaire method to collect data and uses the smart-PLS software to analyse the collected data. The results indicate that hedging and derivatives techniques and Fintech adoption have a positive linkage with financial risk management. The findings also exposed those effective financial decisions significantly and positively mediate among hedging and derivatives techniques, Fintech adoption and financial risk management in banks in Saudi Arabia. This study offers valuable insight for policymakers in terms of developing regulations related to financial risk management.

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