Financial Risk Management Process

[Suba]

Many factors can give rise to financial risks such as market fluctuations, credit risk, liquidity, interest rate risk, operational risk, legal and political risk. So financial risk management focuses on measuring the impact of risks, identifying risks, evaluating them, and implementing risk management strategies with the aim of reducing the risk of loss. So risk management can be implemented through several processes or steps such as risk identification, risk evaluation, implementing strategies to reduce financial risk, evaluation and monitoring.

 

[Starmix]

They are scary risks yet business operators, and investors need to fight or control them as much as possible to evade them trough applying those you mentioned like evaluation, implementation, and identification strategies.