3. **In what ways do changes in interest rates and inflation levels affect a company's financial risk profile, and what techniques can be used to manage these risks?
2. **How do market volatility and geopolitical events contribute to financial risk, and what strategies can businesses employ to mitigate the impacts of such uncertainties?
**What are the main types of financial risk, and how can organizations effectively identify and measure these risks in their operations?
3. **What role do financial derivatives, such as futures, options, and swaps, play in managing financial risk, and what are the potential risks associated with using these instruments?
2. **How do interest rate changes impact the financial stability of a company, and what strategies can companies employ to manage interest rate risk?
**What are the key differences between market risk, credit risk, and operational risk, and how do financial institutions typically mitigate these risks?
3. **In the context of investment portfolios, how can diversification help in managing financial risk, and what are the limitations of diversification as a risk management strategy?
2. **How do changes in interest rates impact financial risk for both individuals and corporations, and what strategies can be employed to hedge against interest rate risk?
**What are the main types of financial risk that businesses typically face, and how can they be effectively managed or mitigated?
3. **What role does diversification play in managing market risk, and what are some strategies investors can use to diversify their investment portfolios?