FINANCIAL RISK AND ITS TYPES
Understanding Financial Risk and Its Types Before investing time in methods to assess and reduce risk it is essential for the analyst to be aware of what the financial risks can be and what their consequences are. Risk to the financial market can be described as the chance of experiencing a negative and unexpected outcome due to market fluctuations. These risks may result from an inadequate flow of cash in flow management or lower than expected revenue-related risks. They may be triggered by many reasons: Poor management. A high amount of debt. Changes in exchanges or interest rates. Investments or market transactions that have high levels of risk. Insufficient information to make a decision. Financial Risk management is among the main concerns of any company across all fields and geographical regions. This is why the exam called FRM Financial Risk Manager, also called FRM Test, is getting a lot of attention from ex...