The Impact of Balanced Scorecard on Risk Management and Financial Stability in Palestinian Banks: a Case Study Analysis

EasyChair Preprint 14588

Abstract

In the increasingly complex and volatile financial environment, risk management and financial stability have become critical concerns for banks worldwide, including those operating in developing economies like Palestine. The Balanced Scorecard (BSC), traditionally used as a strategic management tool, has been adopted by many banks to enhance their performance measurement systems. However, its role in strengthening risk management practices and ensuring financial stability is still underexplored, particularly in the context of Palestinian banks. This study aims to analyze the impact of BSC implementation on risk management and financial stability in Palestinian banks through a detailed case study approach.

The research begins by exploring the conceptual framework of the Balanced Scorecard and its potential application in risk management. It examines how the BSC’s multidimensional approach—covering financial, customer, internal process, and learning and growth perspectives—can be leveraged to identify, assess, and mitigate risks within banking operations. The study also considers the unique challenges faced by Palestinian banks, such as economic instability, political uncertainty, and regulatory constraints, which necessitate robust risk management frameworks.

Through a series of in-depth case studies of leading Palestinian banks, the research investigates how these institutions have integrated the BSC into their risk management strategies and the resulting impact on their financial stability. The study employs a mixed-methods approach, combining quantitative analysis of financial indicators with qualitative insights from interviews with senior bank officials and risk management experts. This methodology enables a comprehensive assessment of the effectiveness of BSC in enhancing risk management capabilities and contributing to overall financial stability.

Keyphrases: Balanced Scorecard, Banking Sector, Case Study Analysis, Palestinian banks, Strategic Management, developing economy, financial stability, performance measurement, risk identification, risk management

@booklet{EasyChair:14588,
  author    = {Oluwaseyi Oladele and Dylan Stilinki},
  title     = {The Impact of Balanced Scorecard on Risk Management and Financial Stability in Palestinian Banks: a Case Study Analysis},
  howpublished = {EasyChair Preprint 14588},
  year      = {EasyChair, 2024}}