The Impact of Risk Management on the Financial Performances and Expected Future Challenges of Banks in Kazakhstan

Abstract

This study examines the financial performance of three selected commercial banks in Kazakhstan for the period from 2012 to 2022. This study uses a comprehensive quantitative approach to investigate the impact of various risk elements on the financial health of banks, with a particular focus on return on equity. These elements include credit, market, liquidity, and operational risks. The analysis is based on data from financial reports for the last decade of Kazakhstani banks. The study uses regression models to assess the significance of these risks and their impact on financial performance. The result of the study illustrates each risk factor’s influence on indicators and it shows negative effects. For mitigating these risks the research highlights the importance of creating a sustainable risk management framework. It concludes with recommendations, suggestions, and regulators in Kazakhstan on improving risk management strategies to increase financial stability and resilience to future challenges presented below for banks