Identification and analysis of strategic financial risks in the petrochemical industry of the Islamic Republic of Iran

Document Type : Original Article

Authors

1 Department of Financial Management, Faculty of Islamic Studies and Management, Imam Sadegh University, Tehran, Iran

2 Master's student in business administration, finance major, Faculty of Islamic Studies and Management, Imam Sadiq University, Tehran, Iran.

3 Associate Professor, Department of Finance, Faculty of Islamic Studies and Management, Imam Sadiq University, Tehran, Iran.

Abstract

The petrochemical industry is one of the important industries that can be very effective in the economic growth and provision of foreign exchange resources of the country; Therefore, maintaining, developing and investing in this industry is very important. But today, it has been exposed to many risks and challenges that have weakened the petrochemical industry and caused many problems and damages. In Iran's petrochemical industry, there are many different risks that can be mentioned, and financial strategic risks are among the most important risks of the industry. Financial strategic risks are financial and non-financial risks that prevent the realization of the financial strategic goals of the industry and affect all the components and dimensions of the industry in a comprehensive and macro way. These risks are long-term and critical, which can disrupt the process, financial flow, etc. of the industry and cause many problems, which ultimately make the growth and development strategies of the industry ineffective. In this regard, the research has been carried out with the central problem of identifying and analyzing the financial strategic risks of the petrochemical industry of the Islamic Republic of Iran. This research is a qualitative research that collects data from financial experts of the petrochemical industry with the help of interviews, and creates a network of themes using the MAXQDA 2018 software using thematic analysis method. The results of this research show that the strategic financial risks of the petrochemical industry of the Islamic Republic of Iran include the risk of financial sanctions, the risk of effective financial decisions of the government, credit risk, liquidity risk, financial risks of production, exchange rate risk, and risks of insurance and risk coverage.

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Economic Strategy
Volume 11, Issue 42 - Serial Number 42
October 2022
Pages 137-172

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