ABSTRACT. Risk management is a dynamic process that involves taking all necessary steps to identify and address risks that impact the organization’s goals. The objective of this paper is to investigate the impact of risk management practices, specifically risk identification, on business performance in insurance companies in Palestine. The study employed an explanatory research design, and data were collected from a random sample of 140 employees from insurance companies in Palestine using a well-structured questionnaire. After confirming the normal distribution of responses and validating the tool’s reliability and validity, descriptive statistics was conducted, while inferential statistics was examined using Pearson product-moment correlation. The data were analyzed using statistical analysis with SPSS. The results of this paper revealed a positive relationship between risk identification and business performance. As the levels of risk identification increase, business performance also tends to improve. Therefore, it is recommended that insurance companies take cost-effective measures to identify risks promptly, effectively mitigate risks, and promote a culture of risk management throughout the organization. Continuous evaluation of risk management practices and risk identification is essential to identify areas where resources are exposed to risks, ensuring the company’s ability to thrive in a challenging work environment.
JEL codes: D12; D22; D91; L66; E71

Keywords: risk identification; risk management practices; business performance; insurance companies; Palestine; risk

How to cite: Makkawi, H. (2024). “The Impact of Risk Management Practice on the Business Performance of Insurance Companies in Palestine,” Economics, Management, and Financial Markets 19(1): 28–44. doi: 10.22381/emfm19120242.

Received 16 May 2024 • Received in revised form 6 June 2024
Accepted 7 June 2024 • Available online 12 June 2024