KAOMA, Simone Chishala2025-09-222025https://research.unilus.ac.zm/handle/123456789/597Master of Science in Risk Management - DissertationThis study examines how financial metric literacy—encompassing profitability, liquidity, and solvency—impacts risk management effectiveness in Zambia’s financial sector. Using a mixed-methods approach (quantitative surveys, N = 75; qualitative thematic analysis), the research identifies gaps in financial literacy and their consequences for organizational resilience. Grounded in economic and behavioral theories, findings reveal significant correlations: liquidity literacy showed the strongest link to overall financial literacy (r = 0.479, p < 0.01), while financial literacy explained 35.6% of risk strategy efficacy (R² = 0.356, p < 0.001). Qualitative themes highlighted barriers such as inconsistent training, cognitive biases, and overreliance on fintech tools. The study contributes empirical insights to under-researched African contexts, advocating for standardized training and regulatory reforms to strengthen financial decision-making. Limitations include the cross-sectional design and Zambia-specific sample, urging future research to explore longitudinal and cross-country dynamics. These findings underscore the role of targeted financial education in mitigating risks and enhancing stability in volatile economies. Keywords: Financial literacy, risk management, profitability, liquidity, solvency, emerging markets.enThesis