Market Risk Management

Market risk management involves identifying, assessing, and mitigating the potential financial losses that can arise from changes in market conditions, such as fluctuations in stock prices, interest rates, and foreign exchange rates. Businesses and investors use various strategies, like diversification and hedging, to protect themselves against these risks. The goal is to minimize negative impacts on investments and overall financial performance, ensuring stability and sustainability in their operations and financial health. Effective market risk management enables organizations to make informed decisions while navigating unpredictable market environments.