Corporate Financial Management, Risk Assessment, and Investment Strategies: Analyzing Their Effects on Business Sustainability

Abstract

This study examines the interplay between corporate financial management, risk assessment, and investment strategies, and their effects on business sustainability. The purpose is to identify how these elements contribute to sustainable business practices and long-term financial health. A qualitative research method is employed, involving a comprehensive review of existing literature, case studies, and interviews with industry experts. Findings reveal that effective financial management is crucial for optimizing resource allocation and maintaining liquidity, which are essential for sustainability. Risk assessment processes help companies identify potential threats and opportunities, enabling proactive management of financial risks. Investment strategies that emphasize long-term growth and sustainability, such as environmental, social, and governance (ESG) investments, are shown to enhance business resilience and stakeholder trust. However, challenges remain in balancing short-term financial performance with long-term sustainability goals. The study highlights the importance of integrated financial management approaches that align risk management and investment decisions with corporate sustainability objectives. The insights provided can guide businesses in developing robust financial strategies that support sustainable development and competitive advantage in an increasingly volatile economic landscape.