FINANCIAL RISK MANAGEMENT

Risk a resultant of exposure, is the probability of loss but exposure is a possibility of loss. But risk provides a basis for opportunity. Financial Markets presently have exposure to indefinite risks. Change in market prices offers risk. It's difficult to eliminate risk but strategies, active management to mitigate the risk needs to be formulated. Financial risk can be hedged or a portion of it can be hedged or hence simply accept the financial instrument with the risk. The present paper constitutes the analysis of two research paper in order to understand about financial risk and its management.