- This question explores the various categories of financial risks, such as market risk, credit risk, liquidity risk, operational risk, and systemic risk, among others. It also delves into strategies and tools that businesses use to manage these risks, such as diversification, hedging, risk assessment models, and the implementation of robust internal controls.
2. **How do changes in interest rates influence the financial risk profile of both individuals and corporations, and what strategies can be employed to protect against adverse impacts?
