Definition: In the civilization of finance, hazard monitoring describes the exercise of identifying potential risks in advance, analyzing them and taking precautionary measures to reduce/curb the threat.Description: When an entity provides an investment decision, it exposes itself to a number of financial risks. The quantum of such risks depends on the form of financial instrument. These financial risks could be in the develop of high inflation, volatility in resources industries, recession, bankruptcy, etc.So, in order to minimize and also regulate the exposure of investment to such dangers, money supervisors and also investors exercise hazard management. Not providing due prestige to threat management while making investment decisions could wreak havoc on investment in times of financial turmoil in an economic climate. Different levels of threat come attached with different categories of ascollection classes.For instance, a resolved deposit is taken into consideration a much less risky investment. On the various other hand also, investment in equity is taken into consideration a risky venture. While practicing danger management, equity investors and fund managers tfinish to diversify their portfolio so as to minimize the exposure to danger.


You are watching: Which of the following is the best definition of financial risk?

Trending DefinitionsDebt fundsRepo rateMutual fundGross domestic productData miningAdvertisingProductMonopolyCryptographyDepreciation
DiggGoogle BookmarksStumbleUponRedditNewsvineLive BookmarksTechnoratiYahoo BookmarksBlogmarksDel.icio.usApnaCircle

Mail this Definition


My Saved Definitions

Sign inSign up

Find this comment offensive?


Choose your reason listed below and click the Report button. This will alert our moderators to take action

Name

Reaboy for reporting:

Foul languageSlanderousInciting hatred versus a particular communityOthers
*

Covid India News LIVEStock Market News LIVEDecember Bank Holiday ListCryptocurrency NewsMutual FundsSovepower Gold BondWhat is a Eco-friendly cardTax slabSovereign gold bondBest ELSS fundsLarge cap funds 2021Best mid cap funds 2021What are debt mutual fundsAadhaar card guideIncome TaxNarendra Modi
Covid UpdatesNews Live!Markets Live!Stock Reports PlusStock ScreenerMF ScreenerITR filing guideCandlestick ScreenerSunday ET
Coronavirus India News LIVESensex TodayJio NewsDogecoin PriceCryptocurrencyBinance Coin PriceWhat are multi asset fundsWhat are well balanced mutual fundsGlobal marketsMutual fundsBreaking newsLTC Cash Voucher SchemeSGX NiftySensex LiveIRCTC share priceInfosys share priceRupee
Omicron VariantCyclone JawadCyclone Jawad UpdateCovid India LIVE UpdatesStock Market LIVE UpdatesCryptocurrencyPPF interemainder rateMutual funds SIPTax savings overview 2021Arbitrage fundsLarge & mid cap funds 2021Best aggressive hybrid funds 2021HDFC well balanced benefit fundMutual fundsTax CalculatorIncome Tax slabsPPF
Auto NewsRetail NewsHealth NewsTelecom NewsEnergy NewsIT NewsReal Estate NewsMarketing & Advertising NewsTechnology NewsCFO NewsIT Security News
Pune MirrorBangalore MirrorAhmedabad MirrorItsMyAscentEducation TimesBrand CapitalMumbai MirrorTimes Nowsteustatiushistory.orgमहाराष्ट्र टाइम्ವಿಜಯ ಕರ್ನಾಟಕGo GreenAdEra IndiaEisamayIGN IndiaIamGujaratTimes of IndiaSamayam TamilSamayam TeluguMiss KyraBombay TimesFilmipopMX PlayerNewspaper SubscriptionTimes PrimeColombiaNBT Gold PodcastEi Samight Gold PodcastMX ShareKaro AppMX TakaTak App


See more: All That Are Designed To Accommodate Guards, Quiz 8 Tools Flashcards

About UsArchiveSubscribe to ET PrimePublication your Newspaper SubscriptionCall 1800 1200 004 (Toll Free)Create Your Own AdAdvertise with UsTerms of Use & Grievance RedressalPrivacy policyContact Us