Factors Affecting the Efficiency of Financial Risk Management: Evidence from Electricity Enterprises in Vietnam

This study examines the factors affecting the effectiveness of financial risk management of electricity enterprises based on three criteria: risk identification, risk measurement and assessment, and risk treatment using 164 responses from people of 41 enterprises in the industry. The results of data analysis show that all three groups of factors have the same impact and are equally important to the effectiveness of financial risk management of electric power enterprises. To be specific, identifying financial risks has the greatest impact, measuring and assessing financial risks is the second, and dealing with financial risks is the last. On that basis, the author proposes solutions to improve the efficiency of financial risk management of electric power enterprises in Vietnam.