CORPORATE ADAPTATION STRATEGIES IN FACING FINANCIAL RISKS: A QUALITATIVE STUDY ON INDUSTRIAL SECTOR COMPANIES

Rachmawati; Sri Rachmawati Rachman

Authors

Rachmawati Sekolah Tinggi Ilmu Ekonomi Enam Enam Kendari
Sri Rachmawati Rachman Sekolah Tinggi Ilmu Ekonomi Enam Enam Kendari

Keywords:

Financial Adaptation; Industry; Mitigation Strategy; Risk Management

Abstract

The industrial sector plays a crucial role in the global economy, significantly contributing to Gross Domestic Product (GDP) and employment absorption. However, many industrial companies have not effectively implemented adaptive strategies to manage financial risks arising from economic fluctuations, exchange rate volatility, and commodity price instability. This research gap lies in the lack of a comprehensive understanding of integrated adaptive strategies within financial policies and risk management in industrial firms. This study employs a qualitative approach with a case study methodology, involving in-depth interviews with key stakeholders to identify adaptive strategies applied in response to economic uncertainties. The findings indicate that industrial firms rely on financial diversification, hedging, supplier diversification, technological adoption, and efficient working capital management as key strategies for mitigating financial risks. External factors, such as government regulations and industrial policies, also play a significant role in determining the effectiveness of these adaptive strategies. This study contributes to the academic literature on financial risk management and provides guidance for stakeholders in formulating more adaptive and evidence-based financial policies.

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