What is financial risk management?

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Financial risk management is the practice of economic value in a firm by using financial
instruments to manage exposure to risk: Operational risk, credit risk and market risk,
foreign exchange risk, Shape risk, Volatility risk, Liquidity risk, Inflation risk, Business
risk, Legal risk, Reputational risk, Sector risk etc. Like general risk management,
financial risk management requires identifying its sources, measuring it, and plans to
address them.