Introduction of Financial Risk Management

        When it comes to the operating environment of a modern business, it is no doubt increasingly dynamic. It harnesses some other characteristics as well such as higher complexities, volatility, and unpredictability. Due to it, business risks are never static. If time is concerned, firms often encounter risks and try to minimize them or mitigate them as soon as possible. Recently, corporations have turned the resources for addressing risks due to more regulatory necessities. Thanks to the financial crisis of 2008, it can now be identified which risks are more important to be mitigated timely. In the financial sector, the negligible quality of assets highly affects the investments. Thus, the processes concerning risk exploitation, management, and identification have become very important for each and every organization. For the management of risks, it is important to initiate the risk assessment, the process which involves a specific system of finding risks with the potential of offering opportunities. With a thorough utilization of risk assessment, all the exposed areas are revealed to the firm (Zopounidis and Galariotis 2015).

        In this paper, Barclays Group Plc is concerned and its report of risk assessment is provided. At the beginning, a diversity of risks is highlighted. Moving on, different risks and steps are distinguished which are involved in the management of financial risk. Even the main techniques and tools for efficient management of financial risks are involved in the discussion. As for the main body, a thorough assessment on the risk exposure of Barclays is provided. The assessment will prioritize the main risks after identifying them and design a strategy for risk management. Additionally, the recent financial crisis’ impact on the modern techniques for managing risks will also be probed. Then, a detailed analysis focusing on the modifications for rehabilitating from the aftereffects of such a crisis will be offered in the paper.

References of Financial Risk Management

Zopounidis, Constantin, and Emilios Galariotis. 2015. Quantitative Financial Risk Management: Theory and Practice. John Wiley & Sons.