Financial Risk Management (FRM)

Financial Risk Management (FRM) involves identifying, assessing, and controlling potential financial losses that a business or individual might face due to market fluctuations, credit issues, or operational challenges. It aims to minimize the impact of uncertain events on financial stability by using strategies like diversification, hedging, and insurance. FRM professionals analyze risks to make informed decisions, ensuring an organization remains resilient against unpredictable financial changes, thereby protecting assets, profitability, and long-term stability.