Effective Risk Management Saves Companies from Financial Ruin.
The article discusses how companies on the Kuala Lumpur Stock Exchange face various risks like interest rates, currency fluctuations, and market changes. By comparing their financial data and strategies, it was found that companies who manage risks well by avoiding excessive borrowing, using hedging tools, and diversifying their business performed better than those who didn't. This was evident during the Asian Financial Crisis in the late 1990s. Effective risk management techniques can help companies protect their profits and shareholders' wealth.