Reconceptualizing Integrated Financial Risk Management: A Theoretical Accounting Framework For Volatile Markets In Emerging Economies

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Published: 2026-02-25
DOI: https://doi.org/10.53555/qj2f1y23
Keywords:
Financial risk management, Emerging markets, Market volatility, Risk spillovers, Accounting theory

Main Article Content

Apratim Baruah
Research Scholar, Department of Business Administration, Gauhati University, Assam, India
Dr. Vimalkumar Mistry
Assistant Professor, Department of Finance, N L Dalmia Institute of Management Studies and Research, Mumbai, India
S. Aishwarya
Research Scholar ,Faculty of Management, SRM Institute of Science and Technology, Kattankulathur, Tamil Nadu, India
Dr. Sunil Kumar Srivastava
Associate Professor, Department of Mathematics and Statistics, Teerthanker Mahaveer College of Pharmacy, Teerthanker Mahaveer University Moradabad, India
Radhika Sandhad
Deputy Branch Manager (Credit Officer), Department of Banking and Operations, Union Bank of India

Abstract

Emerging markets are increasingly exposed to financial volatility driven by global financial cycles, capital flow fluctuations, and cross-market spillovers, which pose significant challenges for effective financial risk management. Traditional risk management approaches often treat risk as a peripheral managerial function, resulting in fragmented practices that fail to capture systemic interconnectedness and accounting implications. This study aims to reconceptualize integrated financial risk management by developing a theoretical framework that is specifically suited to volatile emerging market environments. Adopting a conceptual and theory-building approach, the study synthesizes insights from the literature on financial volatility, risk spillovers, and accounting-based risk disclosure to construct an accounting-centered framework for financial risk management. The proposed framework integrates risk identification, measurement, validation, mitigation, governance, and disclosure within a unified structure that emphasizes decision-usefulness and transparency. By positioning accounting systems as the central mechanism through which financial risks are processed and communicated, the framework enhances understanding of how organizations can strengthen resilience under conditions of uncertainty. The study contributes to accounting and financial theory by providing a structured conceptual foundation for analyzing financial risk in emerging markets and offers guidance for future empirical research and policy development aimed at improving financial stability.

Article Details

Issue

Vol. 22 No. 2 (2026): Journal of Theoretical Accounting Research

Section

Articles
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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Reconceptualizing Integrated Financial Risk Management: A Theoretical Accounting Framework For Volatile Markets In Emerging Economies. (2026). The Journal of Theoretical Accounting Research, 22(2), 01-09. https://doi.org/10.53555/qj2f1y23

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