Author(s): Janice Hassall
Risk management strategies are essential components of financial markets, enabling investors, financial institutions, and policymakers to mitigate risks, enhance stability, and preserve financial resilience. This paper offers a comprehensive exploration of risk management from a financial economics perspective, examining key concepts, tools, and methodologies employed to identify, assess, and manage risks within financial markets. From diversification and hedging to quantitative risk measurement models and regulatory frameworks, this paper provides insights into the proactive measures taken to navigate the complexities of modern financial markets and address emerging risks and vulnerabilities.