Financial Risk Management

Created by the experienced author team of Frank Fabozzi and PamelaPeterson Drake, Financial Risk Management examines theessential elements of this discipline and makes them accessible toa wide array of readers-from seasoned veterans looking for a reviewto newcomers needing to get their footing in finance.
Financial risk is the exposure of a corporation to an event thatcan cause a shortfall in a targeted financial measure or value andincludes market risk, credit risk, market liquidity risk, operational risk, and legal risk. This material discusses the fourkey processes in financial risk management: risk identification, risk assessment, risk mitigation, and risk transferring. Theprocess of risk management involves determining which risks toaccept, which to neutralize, and which to transfer.