Presenting a model for measurement of the relationship between financial risks and financial ratios

All financial institutions and banks have risks in their operations that have not been able to eliminate them, but there is the possibility of managing these risks. Therefore, financial institutions for continuity should be identify, control and reduce the risk of their life to do this, factors affecting various risks will be very useful. In many of the financial institutions framework for managing risks to consider. In this paper, we assume the existence of a significant relationship between financial risk and financial ratios that can be validity by examining past research and then using canonical correlation analysis model to evaluate and calculate the relationship between financial risks and financial ratios presented. Canonical correlation analysis is an extension of multiple correlation for the relationship between the two sets of variables. Canonical analysis, linear combination of variables that are highly correlated with the second set of variables is found. Three financial risks include liquidity risk, credit and market using certain financial ratios and indicators have been defined and are considered as independent variables. As well as financial ratios, liquidity, leverage and profitability are dependent variables .To calculate risk and financial ratios of the information contained in the financial statements and the balance sheets of 10 banks Between 88 to 93 were used. Finally, it appears that liquidity risks have the greatest impact on financial ratios. After calculations, it is determined that liquidity risks have the most effect on the liquidity, leverage and profitability rations of bank with the effect values of 0.697, 0.644 and 0.624, respectively