Financial Management in Emerging Markets: Challenges and Opportunities

Aim. Development of the author’s concept of increasing the efficiency of financial risk management on the basis of application of the technology of creating and using the digital twin of the enterprise.Objectives. To formalize the problems of existing approaches to solving the problems of financial risk management of enterprises of the real sector of economy; to identify trends in the development of digital twins, to formulate the advantages of their practical application and to give the author’s interpretation of the concept of “digital twin of the enterprise”; to build and substantiate a multilayer system of indicators of the digital twin of the enterprise in the context of improving the efficiency of financial risk management; to develop the principles of building a digital twin of the enterprise, focused on solving the problems of financial risk management.Methods. The research was carried out on the basis of system approach, in the process of realization of which the methods of synthesis, logical comparative, factor and graphical analysis, basic provisions of financial risk management and the results obtained in domestic and foreign scientific literature on the problems of realization of approaches and methods of financial risk management were used.Results. The author’s concept of increasing the efficiency of financial risk management based on the application of new technologies for creating digital twins is proposed. In particular, by means of formalizing the problems of existing approaches to solving the problems of financial management, identifying trends in the development of methodology and technologies for creating digital twins, the idea of increasing the efficiency of financial risk management on the basis of creating a digital twin of the enterprise is outlined. The multilayer system of indicators defining the structure of this digital twin is proposed and substantiated, the tasks are defined and the principles of its construction oriented to solving the tasks of financial risk management are developed. The financial kernel of the digital twin of the enterprise is constructed, containing the contours of formation of financial indicators common for different enterprises, determining the achievement of the objectives of financial risk management and its efficiency. The qualitative substantiation of increasing the efficiency of financial risk management with the application of the methodological basis for the creation and use of digital twins proposed in the article is given.Conclusions. Conceptual provisions of creation and use of digital twins for the purposes of financial risk-management, given in the article, create a theoretical and methodological basis for increasing the efficiency of financial risk-management taking into account the use of new digital technologies and can serve as a basis for practical construction of effective systems of financial risk-management at enterprises of the real sector of economy.

For a decade or so, academic researchers and practitioners working in the field of software engineering have realized that in order to decrease the failure rate of software project development there is a need to make current practices of risk management more effective. The objective of this study is to explore how academia can play a significant role in making the current practices of software project risk management more effective. To achieve the objective fourteen experts in six different countries were selected to participate in this study. Following the qualitative analysis of open ended questionnaire that the authors undertook, five main related categories have been identified that shape up the role of academia in making current practices of risk management more effective.

The study aimed to establish a financial management model to improve profitability for smallholder banana producers in Mutasa District, Zimbabwe. The banana farming activities of these smallholder farmers were unprofitable. The study sought to examine contemporary financial management methods, identify obstacles to obtaining financing, and evaluate the correlation between financial management and profitability within the context of the Time Value of Money (TVM) theory. A quantitative method was employed. The research comprised 134 smallholder banana farmers in the Mutasa District of Zimbabwe. The emphasis was on Ward 7 and Ward 29, the two leading banana-producing wards in the Mutasa district. The quantitative component entailed the distribution of structured questionnaires to a sample of 100, as calculated by Slovin’s Formula. The research employed a questionnaire to gather data. The research successfully obtained responses from 88 smallholder farmers. Data were analysed using statistical methods, including descriptive statistics, ANOVA, and regression analysis. The research indicated the use of community savings groups. Nonetheless, there was minimal adherence to optimal financial management methods, such as budgeting and record-keeping. Challenges such as interest rates and financial illiteracy significantly limit access to financing. Fifty-eight percent of farmers reported profits each entire season between 200. This study indicates that improving farmers’ financial management is essential through the enhancement of their financial literacy and management techniques. Relevant training programs must be established to develop key financial management skills. Finance institutions must provide tailored finance packages for smallholder banana farmers. Farmers must enhance their efforts in securing money and savings, improve cash flow management, and strengthen record keeping and budgeting for the upcoming season. Future study may examine the influence of contemporary technologies on financial management practices and the effectiveness of financial literacy programs in rural areas.

Purpose: The purpose of this study was to investigate how financial risk management strategies lead to growth of MFI sector in Kenya.Methodology: The study adopted a correlation survey research design. The population of this study was fifty seven (57) MFIs. The sampling frame was the list of MFIs provided in the AMFI website www.amfikenya.com. A sample of thirteen (17) MFIs was selected using the random sampling approach. A questionnaire and an interview schedule were the main data collection tools. Qualitative data was analyzed using content analysis whereas the quantitative data was analysed using Statistical Package for Social Sciences (SPSS) where descriptive and regression analysis were conducted to determine the relationship between enterprise risk management strategies and growth of MFIs.Findings: The findings indicated that MFIs had effective financial risk management strategies such as effective credit risk management practices, liquidity risk management practices, interest risk management practices and price risk management practices. In particular, MFIs took into consideration the conditions, characters, capacity, collateral and capital of borrowers. Strict debt collection practices were widely adopted by MFIs. In addition, the concept of Know Your Customer (KYC) policy, seem to have been adopted by MFIs. The relationship between financial risk management strategies and growth was positive and significant. It also shown that sources of funds for MFIs include external sources and internal sources and the most frequently used source of funds are bank loans. The use of banks loans may present various risk exposures to MFIs, the most significant being interest rate risk. However, the ability of MFIs to source funds from various sources indicates that MFIs can apply the pecking order by first exploiting internal sources of funds since they present a lower financial risks and then move on to external sources. However, despite the financial risk exposure accompanied by leverage from external sources, MFIs may also benefit as they may experience higher growth driven by the leverage. It was also found that MFIs had put in place a number of good practices that had emerged to promote responsible and inclusive lending. These include loan size limits, standardized (simple) loan terms, zero tolerance on delinquency, group-based lending. This finding implies that MFIs have put in place effective credit risk management policies which are part of an overall financial risk management strategy. The existence of effective financial risk management practices may have influenced the growth of MFIsUnique contribution to theory, practice and policy: The study recommends that the MFIs to continue practicing effective financial management practices as this would improve the growth of MFIs.

Improving Financial Literacy and Management Skills of Fisherman Groups Through Practical Accounting Education (Case Study: Seri Village, Ambon City) This community service program (PkM) aims to empower the fisherman groups in Seri Village, Ambon City, by enhancing their basic financial literacy and management skills using a practical accounting education approach. Weak financial management skills, especially in managing the fluctuating catch yields and income, are often the main obstacle to achieving economic stability and growth in the fisheries sector. The implementation method utilized was participatory and application-based training and mentoring, tailored to the income and expenditure patterns of the fishing community. The program involved a series of workshops that simplified basic accounting concepts, such as transaction recording. The effectiveness of the program was measured by comparing the results of a pre-test and post-test to gauge the increase in knowledge, as well as through observation and questionnaires to assess changes in financial management behavior. The results showed a significant increase in the understanding of financial management concepts among the Seri Village fishermen, evidenced by the improvement in the average post-test scores. Post-training mentoring also demonstrated positive changes in financial management practices, including the ability to set aside savings for boat/gear maintenance and the ability to control daily debt. In conclusion, practical accounting education is an effective and crucial instrument in community empowerment programs, particularly for the fishing sector. This PkM successfully equipped the fishermen with practical tools to make better and more planned financial decisions, directly contributing to the improvement of economic independence and the well-being of the fishing families.

This study investigated the influence of financial management practices on the performance of housing cooperative societies in Kenya, amidst a growing demand for affordable housing and challenges in the sector. The research was conducted among 115 housing cooperatives registered under the National Union for Housing Cooperatives (NACHU) in Nairobi County. A cross-sectional research design was employed, utilizing structured questionnaires to gather primary data from general and financial managers. The study's theoretical framework was anchored in the Resource-Based View, Pecking Order Theory, Cash Management Theory, and Modern Portfolio Theory, to comprehensively assess the impact of financial management practices on organizational performance. Key findings from the study revealed that budgeting management, cash management, financial risk management, and dividend policy management all significantly influence the performance of housing cooperative societies. Budgeting practices, including budgetary control and effective communication, were found to be essential for detecting deviations from plans and ensuring fiscal discipline. Cash management practices, such as maintaining proper records and conducting due diligence before investments, also played a crucial role in influencing the societies' performance. Furthermore, the study highlighted the importance of financial risk management strategies in enhancing resilience during economic downturns and improving resource allocation. Dividend management practices were identified as a key factor in attracting and retaining members, with preferences for stable and immediate dividends influencing financial decisions.The study concluded that effective financial management practices are indispensable for the sustainability and growth of housing cooperative societies. Recommendations included the institutionalization of comprehensive budgeting processes, adoption of robust cash management practices, mainstreaming of financial risk management, and implementation of balanced dividend policies. Further research is suggested to explore additional variables influencing cooperative performance and to examine the role of digital financial tools in enhancing financial management practices

This study explores the relationship between financial health management and employee well-being in the petrochemical and chemical industries. Using a case study method and a mixed-methods approach, the study analyzes how effective financial management affects various aspects of employee well-being, including job satisfaction, mental health, and personal financial stability. Quantitative data were obtained from a survey measuring the relationship between financial management practices and employee well-being, while qualitative data were obtained through in-depth interviews with financial managers, HR managers, and employees. The findings indicate that companies with good financial management tend to have more satisfied, mentally healthy, and financially stable employees. In addition, transparent and participatory financial management improves corporate culture and the relationship between management and employees. This study emphasizes the importance of integrating good financial practices and employee well-being policies in creating a productive and harmonious work environment.

A business both small and large scale requires good financial management. The potential of UMKM so far, has not been sufficiently exploited to the maximum, on the contrary many MSME actors (owners) actually often experience internal problems making it difficult to develop and compete both among MSMEs and with large producers. The problem of financial management is one of the problems that is often encountered in MSMEs. Financial management and financial management are important aspects for the progress of MSMEs. Financial management can be done through accounting. Accounting is a systematic process to produce financial information that can be used for decision making for its users. The proposed Community Service Program is to provide MSME financial training, specifically regarding standardized and simple financial management, along with the process of socialization and assistance to MSMEs and financial management. Centralized training conducted is training on simple financial management methods and MSME financial management. The output of this program is that MSME practitioners gain knowledge of simple financial reporting and financial management.

The “Personal Financial Management Framework of Employees in Private Autonomous Universities in Region 3” is an applied and descriptive quantitative study that aims to look at which financial management practices have an impact on the respondents’ financial oversight. To influence the trajectory of their well-being, the respondents must learn how to manage their daily lives, which is why this study is crucial. Pearson product-moment correlation was used to achieve this. P-values of.000 indicated a significant relationship between the identified variables. The test revealed that financial knowledge was a crucial factor that aided in improving the respondents’ readiness for future financial management. The R-value of 0.495 showed that there was a reasonably significant association between the two variables. It means that respondents’ financial management prospered more when they had higher levels of financial management knowledge This study also looked at whether respondents’ salaries were an interacting factor that influenced the strength of the relationship between the identified variables. Pearson product-moment correlation analysis failed to reject the hypothesis that monthly salary was the moderator variable significantly affecting the strength or direction of the relationship between the respondents’ financial management and their personal finance management. This result indicated that the sample did not contain enough data to demonstrate that salary was a moderator that would influence the relationship between financial management and personal finance management. However, the absence of evidence does not rule out the existence of the effect. In sum, the findings offer insightful information about the critical role that financial management plays in a person’s financial management. The findings also demonstrated that among the respondents, financial management is a crucial factor to consider for effective personal finance management. Some implications for understanding and practicing financial management among the selected respondents could be developing self-esteem and helping them build for the future. Keywords: Financial Management, personal finance management, private autonomous university

Real estate industry has become a pillar industry of the national economy. Enhancing estate enterprise management must improve the financial management level of real estate enterprise. According to the main problems of real estate enterprise financial management, enhancing financial management informatization of real estate enterprise is discussed in this paper in order to improve the competitiveness of the real estate industry and promote its fast development.

The motivation for this research was the desire to disclose the social nature of the financial risks of global companies: the authors attempted a scientific explanation of the influence of corporate social responsibility, which is manifested through the preservation and creation of additional jobs, on the financial risks of global companies. The research aims to establish the interdependence between financial risks and sustainable employment in global companies. This goal is achieved using the SEM (structural equation modeling) method based on corporate statistics from the Fortune “Global 500” rankings for 2021–2023. As a result, the consequences of global companies’ CSR (corporate social responsibility) practices in personnel management and financial risk management are modeled and described through quantitative and qualitative patterns. The established regularities proved that for developed and developing countries, the larger the number of employees, the lower the financial risks of global companies—the risk of a decrease in profitability, the risk of loss of profit, and the risk of depreciation of assets. The main conclusion is that there is a close systemic relationship between the financial risks of global companies and their workforce size, suggesting that CSR is key to highly effective financial risk management. A clear distinction between the practices of financial risk management through CSR in developed and developing countries forms the basis of the theoretical significance of the research results. The authors provide recommendations to improve the current practice of financial risk management in global companies by integrating it more closely with personnel management practices, highlighting their managerial relevance. It is proposed that corporate strategies for global companies in developed countries should focus on reducing the risk of declining profitability, as CSR has the most pronounced and consistent impact on this particular financial risk. In developing countries, corporate strategies are recommended to be structured by diversifying the areas of CSR application, with the most promising in financial risk management being the reduction in asset depreciation risk and the reduction in profitability risk. The findings of this research have practical significance because they enhance the predictability of CSR activities of global companies and open up opportunities for highly accurate forecasting of the financial risk implications of ensuring sustainable employment by global companies, considering the specificities of developed and developing countries.

The article explores the terminological apparatus of such categories as "law" and "regularity" and establishes links between them. It has been proved that it is impossible to disclose the content of the methodology of financial risk management of industrial enterprises without applying the laws of different levels of knowledge (universal, general, and partial). In this connection, it has been disclosed the substantive essence of universal, general, and partial laws, the laws that are descriptive and explanatory, the laws that are statistical and dynamic, the laws that are fundamental and applied, the laws that are phenomenological and essential, and the laws of systems formation, functioning and development. The role and place of management laws in the system of laws have been determined and the role of financial risk management laws has been formulated. The basic methods of the research of problems of financial risk management of industrial enterprises have been summarized and the content of the basic laws and regularities of financial risk management of industrial enterprises has been formulated.

The agribusiness sector is a cornerstone of national and global economies, encompassing the production, processing, marketing, and distribution of agricultural goods. Effective financial management within agribusiness is critical, as it directly influences resource allocation, investment decisions, risk mitigation, and overall enterprise sustainability and profitability. This study conducts a comprehensive literature-based analysis to examine how financial management practices bridge finance and farming, focusing on cost management, working capital management, financial risk management, investment appraisal, digital finance adoption, financial literacy, and corporate social responsibility (CSR). Evidence from diverse geographic and operational contexts demonstrates that structured financial practices significantly enhance profitability, operational efficiency, and resilience in the face of seasonal cash-flow fluctuations, price volatility, and environmental risks. Cost management aligns operational efficiency with strategic financial planning, while working capital management ensures liquidity and continuity during peak production periods. Financial risk management and CSR integration mitigate exposure to market and environmental uncertainties, promoting sustainable practices and stakeholder trust. The adoption of digital finance tools and platforms further strengthens the interface between financial planning and farm operations, although constraints such as low digital literacy and infrastructure limitations persist. Moreover, financial literacy among small-scale farmers emerges as a key enabler, facilitating the effective utilization of financial tools and resources. Investment decision-making frameworks incorporating scenario analysis and real-options valuation support informed capital allocation and long-term growth. Overall, the study underscores that bridging finance and farming is operationally vital, multi-dimensional, and strategically essential for achieving sustainable agribusiness growth. Insights from this analysis inform policymakers, practitioners, and researchers seeking to optimize financial management strategies in agribusiness contexts.

The emergence of business process outsourcing (BPO) has changed labor demographics, especially among young professionals, which has sparked increasing demand in knowledge of financial behavior and management techniques. For their financial security and quality of life, financial literacy and behavior are absolutely vital. Many young workers lack enough financial knowledge and management skills, which results in bad financial decisions and behaviors. This difference could lead to unstable finances and compromise long-term security. Putting in place structured financial literacy initiatives fit for this group might greatly improve financial performance. Therefore, the aimed to assess the financial management practices and financial behavior among young professionals of business process outsourcing companies in China. The challenges encountered were also analyzed towards an intervention plan proposal. The study reveals that young professionals in BPO companies generally have a positive view of financial management, but their authority over decisions varies. Financial conduct is influenced by peer influence and societal expectations, and they exhibit varied financial behaviors in budgeting, saving, and long-term planning. However, they face challenges like limited understanding, lifestyle inflation, and balancing short-term and long-term goals.

In Malaysia, critics have raised concerns over mismanagement and goal achievement in zakat institutions. In the light of this, zakat institutions have responded to these concerns by adopting greater transparency to show their accountability. This study examines the current financial management practices and performance in zakat institutions. Six elements of the Financial Management Accountability Index (FMAI), i.e. organisational management, budget, receipts, expenditures, assets and reporting, were used as a benchmark. The study also attempts to find a relationship between financial management practices and financial performance. It employed the census method where all 14 zakat institutions were enumerated, and a sample of 140 employees and 140 customers responded to performance questionnaires. Empirical data were collected mainly through three sets of questionnaires. The data were analysed using descriptive analysis and bivariate correlation. The findings show that receipts, disbursements and asset management are the most crucial areas reflecting a ‘good’ level of practice by zakat institutions. The results also show that there is a positive relationship between financial management and financial performance. This study is significant as it highlights areas for improvement and hence spurs the institutions to achieve their goal. The results may guide zakat institutions on the means to adopt greater transparency and accountability to the public in future. Keywords: zakat, financial management, accountability, performance.