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Financial risk management is the use of financial instruments to control risk within a corporate organization and guarantee the organization adds value. It necessitates the identification of specific hazards to the company that arise from market threats and might endanger the company. Once the risk associated with a financial product, such as the interest rate risk, credit risk, or business risk associated with a bond, has been recognized, it has to be managed. This may be done using a variety of financial risk management strategies.
Financial management involves various types of risks that organizations must identify, assess, and manage. Here are some different types of risks in financial management:
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