GASPRO International Journal of Eminent Scholars

This study gives a critical analysis of the potency of accounting in financial risk management in public organisations in Uyo Metropolis. In carrying out the study, descriptive survey design was adopted, and the study was carried out in Uyo Metropolis in Akwa Ibom State. The targeted population for the study comprised all accounting personnel in select public organisations in Uyo Metropolis. A simple random sampling technique was used to select a total of 120 respondents used for the study. The instrument used for data collection was a structured questionnaire titled “Accounting and Financial Risk Management Questionnaire (AFRMQ).”.  Face and content validation of the instrument was carried out by an expert in test, measurement, and evaluation in order to ensure that the instrument has the accuracy, appropriateness, and completeness for the study under consideration. The reliability coefficient obtained was 0.77, and this was high enough to justify the use of the instrument. The researcher subjected the data generated for this study to appropriate statistical techniques, such as percentage analysis, to answer research questions. The results prove that risk identification happens to be the highest role of accounting in financial risk management and that the extent of potency of accounting in financial risk management in public organisations in Uyo Metropolis is very high. The study concluded that accounting procedures are critical to the success of financial risk management, making accounting a pillar of long-term financial stability and strategic decision-making. One of the recommendations made was that organisations must invest in and integrate advanced technologies in order to fully harness the potency of accounting in financial risk management, and that technologies such as artificial intelligence (AI), machine learning (ML), data analytics, and blockchain have the potential to revolutionise accounting practices by enhancing accuracy, efficiency, and predictive capabilities.

Keywords: Financial Risk, Accounting and Risk Management