The impact of measuring financial risks on improving the financial performance of small projects

An applied study on small projects in the city of Derna

Abstract

The research aims to identify the extent of the financial impact of risk measurement (credit risk, liquidity risk, the risk of financial failure) in improving the financial performance of small projects in Libya. Adoption of the descriptive approach and analytical, where the researcher conducting practical study on a sample of four small projects in the city of Derna, researcher developed a questionnaire by relying on some of the previous studies and theoretical framework. It has been confirmed from the transaction honesty and reliability coefficients. Researcher conducted a field study on a random sample of (45) element of the owners and staff of the project, the responses received are (38) questionnaire at a rate (84%).Data analysis through the financial reporting during the period (2008-2011), as well as the use of statistical software (SPSS), was reached many of the results that can be summarized as follows: Rates and the approved indications has shown through research by the quantitative measurement of many aspects of credit risk and liquidity risk and a reflection of their impact on financial performance. And it showed Altman and Sherrord models, predicted the financial risk that the Z values showed the possibility of financial failure, and this represents the minimum early warning of the risks. results showed through statistical analysis of a large effect to measure the financial risk for small businesses to improve the financial performance of these projects by avoiding these risks or minimize their effects. Finally research presented a set of recommendations, which will hopefully be followed to enhance and strengthen the financial performance of small projects in Libya.