Assessing financial risk management in local governments: Case of Istanbul Metropolitan Municipality (IMM)

Tamer Aksoy and Yunus Emre Asan
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Tamer Aksoy: School of Business, Ibn Haldun University, Department of Business Management, Basak Mah. Ordu Cad.,No: 3, Basaksehir, 34480, Istanbul, Turkey
Yunus Emre Asan: stanbul Metropolitan Municipality, IBB Bakirkoy Hizmet Binasi, Osmaniye Mah. Cobancesme Kosuyolu Bulvari, No:5 34568 Bakirkoy, Istanbul, Turkey

International Journal of Business Ecosystem & Strategy (2687-2293), 2020, vol. 2, issue 4, 10-23

Abstract: The purpose of this study is to examine the impact of the financial risks local governments are exposed to within the scope of financial risk management practices. Istanbul Metropolitan Municipality (IMM) was selected for this study because it is the largest local government with the highest budget. In the study, the development of financial risk performance of IMM between the years 2008-2018 was examined in the light of the risks IMM is exposed to. The main results regarding the risks faced by IMM during the period are as follows: Financial data obtained from the financial statements of IMM were used to examine the performance of listed risks& effects they have on the budget of IMM. The results indicate that (i) risk of dependence on shares from the central budget revenue; (ii) IMM was directly dependent on the central budget in terms of revenues, so in this period, the risk of dependency was high in terms of counterparty risk.

Keywords: Financial risk; financial risk management; Istanbul Metropolitan Municipality; corporate governance; accounting (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:adi:ijbess:v:2:y:2020:i:4:p:10-23

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