Abstract:
This study aimed to highlight the role and contribution of financial risk management in directing and rationalizing the bank’s management decisions in granting loans, by addressing the problem that revolves around the extent of the effectiveness and contribution of financial risk management in directing and rationalizing loan granting decisions in the BNA banking institution? Through this research, we tried to highlight the most important concepts of financial risk management, its objectives in theory and its applied mechanisms, and try to explain the conceptual framework for the process of granting loans in the banking institution and its most prominent requirements. And after the field study was discussed and an attempt was made to give a clearer picture of what was being addressed in theory, the study reached several results, the most important of which are: The Altman model is one of the Dotting method models and is considered one of the modern methods that contribute to rationalizing credit granting decisions and the possibility of applying the Z-Score model to Algerian economic institutions. The Z-Score model is also distinguished by a combination of financial ratios derived from the financial statements outputs of institutions related to determining the path The future of institutions and predicting their failure or success, making it a suitable model for use at the level of banks.
