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Dutch Journal of Finance and Management

The Impact of Risk Management Strategies on the Financial Performance of Yemeni Banks under Economic Turbulence:  Evidence from 2014–2024
Abdullah Abdulhafedh Abdullah Saif 1 * , Mohammed Qasem Al-mafleh 2, Mohammed Abdeulglel Mansoor Mohammed 3 4, Abdullah Mohammed Abdulnoor Abduljalil 4, Akram Ali Abdullah Altahery 4 5
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1 Department of Management Sciences and Engineering , Nanjing University of Information Science and Technology, Nanjing, China
2 Department of Financial and Banking Sciences, Faculty of Economics and Political Science, University of Aden, Yemen
3 Department of Accounting, Yemen Soft Company, Taiz, Yemen
4 Department of Accounting, University of Science & Technology, Taiz, Yemen
5 Department of Accounting, Tax Authority Office, Taiz, Yemen
* Corresponding Author
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Research Article

Dutch Journal of Finance and Management, 2025 - Volume 8 Issue 2, Article No: 40506
https://doi.org/10.55267/djfm/17902

Published Online: 13 Feb 2026

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APA 6th edition
In-text citation: (Saif et al., 2025)
Reference: Saif, A. A. A., Al-mafleh, M. Q., Mohammed, M. A. M., Abduljalil, A. M. A., & Altahery, A. A. A. (2025). The Impact of Risk Management Strategies on the Financial Performance of Yemeni Banks under Economic Turbulence:  Evidence from 2014–2024. Dutch Journal of Finance and Management, 8(2), 40506. https://doi.org/10.55267/djfm/17902
Vancouver
In-text citation: (1), (2), (3), etc.
Reference: Saif AAA, Al-mafleh MQ, Mohammed MAM, Abduljalil AMA, Altahery AAA. The Impact of Risk Management Strategies on the Financial Performance of Yemeni Banks under Economic Turbulence:  Evidence from 2014–2024. DUTCH J FINANCE MANA. 2025;8(2):40506. https://doi.org/10.55267/djfm/17902
AMA 10th edition
In-text citation: (1), (2), (3), etc.
Reference: Saif AAA, Al-mafleh MQ, Mohammed MAM, Abduljalil AMA, Altahery AAA. The Impact of Risk Management Strategies on the Financial Performance of Yemeni Banks under Economic Turbulence:  Evidence from 2014–2024. DUTCH J FINANCE MANA. 2025;8(2), 40506. https://doi.org/10.55267/djfm/17902
Chicago
In-text citation: (Saif et al., 2025)
Reference: Saif, Abdullah Abdulhafedh Abdullah, Mohammed Qasem Al-mafleh, Mohammed Abdeulglel Mansoor Mohammed, Abdullah Mohammed Abdulnoor Abduljalil, and Akram Ali Abdullah Altahery. "The Impact of Risk Management Strategies on the Financial Performance of Yemeni Banks under Economic Turbulence:  Evidence from 2014–2024". Dutch Journal of Finance and Management 2025 8 no. 2 (2025): 40506. https://doi.org/10.55267/djfm/17902
Harvard
In-text citation: (Saif et al., 2025)
Reference: Saif, A. A. A., Al-mafleh, M. Q., Mohammed, M. A. M., Abduljalil, A. M. A., and Altahery, A. A. A. (2025). The Impact of Risk Management Strategies on the Financial Performance of Yemeni Banks under Economic Turbulence:  Evidence from 2014–2024. Dutch Journal of Finance and Management, 8(2), 40506. https://doi.org/10.55267/djfm/17902
MLA
In-text citation: (Saif et al., 2025)
Reference: Saif, Abdullah Abdulhafedh Abdullah et al. "The Impact of Risk Management Strategies on the Financial Performance of Yemeni Banks under Economic Turbulence:  Evidence from 2014–2024". Dutch Journal of Finance and Management, vol. 8, no. 2, 2025, 40506. https://doi.org/10.55267/djfm/17902
ABSTRACT
The prolonged economic turbulence in Yemen has posed significant challenges to the stability and resilience of its banking sector, highlighting the critical need for effective risk governance mechanisms. In this context, the study examines how liquidity, market, credit, and operational risks the core dimensions of risk management affect return on assets (ROA). A balanced panel dataset was constructed from the annual reports of ten banks covering the period 2014 to 2024, selected based on data availability. The analysis employs pooled OLS, fixed-effects, and random-effects estimations, followed by Feasible Generalized Least Squares (FGLS) to ensure robustness.  Correlation results indicate positive associations between all risk dimensions and ROA, with operational risk management showing the strongest relationship, followed by market and liquidity risk management, while credit risk exhibits a weaker link. Regression findings consistently confirm that operational, market, and liquidity risk management significantly enhance profitability, with operational risk management exerting the largest effect. Credit risk management demonstrates a positive but statistically insignificant influence, suggesting a more gradual or delayed impact on financial performance. Collectively, these findings highlight that integrated and well-coordinated risk management practices are essential for sustaining profitability in economically fragile environments.
KEYWORDS
Risk Management Financial Performance Banks Economic Turbulence
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