What is Financial Risk Management & The 4 Types of Risk
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Financial risk management is the practice of identifying, assessing, and mitigating potential financial losses or uncertainties to protect a company's assets and profitability.
Why is financial risk management important?
Financial risk management helps organizations identify, assess, and mitigate potential financial losses, protecting their assets and ensuring long-term viability.
An easy way to understand financial risk management is:
Think of it as identifying and preparing for potential financial losses, like having an emergency fund or insurance to protect your assets.