11-09-2017, 01:35 PM
Today risk plays an important role in all countries, and its management is valuable to banks in that they publish their methods of application on risk management and their operations and results in a programmatic order for customer in order to win the trust of the shareholders. In this article, three banking risk management instruments are represented by financial indices consisting of interest rate risk, capital risk and natural hedging risk. Therefore, the basic problem in this document is the impact of risk management on shareholder wealth. Shareholder wealth is measured by return on equity (ROE). This article has three hypotheses, the main one of which is that there is a significant correlation between risk indexes and ROE. The results show that interest rate risk and diversification risk have a significant correlation with ROE, but there is no significant correlation between credit risk and ROE.