Effective risk management is a crucial factor in enhancing firm financial performance, especially in highly volatile countries like Pakistan (Bernstein, 1996). However, political intervention often disrupts managerial decision-making autonomy and creates challenges in the effective implementation of risk management strategies (Dragomir, Dumitru & Feleagă, 2021). This interference is particularly prominent in State-Owned Enterprises (SOEs) and government firms, leading to inefficiencies in both strategic and operational autonomy (Lopes Júnior, Bandeira de Mello & Bucheli, 2024).
Therefore, the interplay between risk management and firm financial performance—under the moderating effect of political intervention and the mediating role of managerial autonomy—remains a critical and underexplored issue in the context of Pakistan. This demands further empirical investigation, particularly across SOEs, government firms, and private sector organizations to clarify these dynamics.
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