Financial risk refers to the possibility that an individual or organization may experience losses or negative outcomes as a result of financial events or uncertainties. This can include risks such as market volatility, interest rate changes, credit risk, inflation, currency fluctuations, and more. Financial risk management involves identifying, assessing, and managing these risks in order to protect assets, investments, and overall financial stability. Strategies for managing financial risk may include diversification, hedging, insurance, and other risk mitigation techniques. Financial risk is a critical consideration for individuals, businesses, and institutions operating in the global financial markets.