Identify, Measure and Control Financial Exposure

Financial risk is the possibility that losses or uncertainty will damage an investor, business or institution. The main types include market risk, credit risk, liquidity risk, operational risk and systemic risk. Managing them means identifying exposures, measuring them and then reducing them through tools such as diversification, hedging and strong internal controls.

Risk management sits at the heart of banking, asset management and regulation. Strong risk management protects capital and keeps institutions resilient through market shocks. Investment risk and risk management form a core part of our Investment Advisor Certificate. Learn the principles here, and show employers your development through your FRC Video Resume.