financial risk management
Definition
The process of evaluating and managing current and possible financial risk at a firm as a method of decreasing the firm's exposure to the risk. Financial risk managers must identify the risk, evaluate all possible remedies, and then implement the steps necessary to alleviate the risk. These risks are typically remedied by using certain financial instruments as a method of counteracting possible ramifications. Financial risk management cannot prevent a firm from all possible risks because some are unexpected and cannot be addressed quickly enough.
Use this term in a sentence
“ You need to make sure that you are very good at financial risk management so you do not take on to much. ”
“ Henry I think you should take a class in financial risk management at the local community college with your friend Mark. ”
“ Our financial risk management strategy was going very well and we thought everyone was very professional and great to work with. ”
