IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-137-46629-7_3.html
   My bibliography  Save this book chapter

Financial Risk Management

In: Enterprise Risk Management in Finance

Author

Listed:
  • Desheng Dash Wu

    (Stockholm University
    University of Toronto)

  • David L. Olson

    (University of Nebraska)

Abstract

Traditional risk management focuses on risks stemming from physical or legal causes such as natural disasters or fires, accidents, death and lawsuits. Financial risk management deals with risks that can be managed using traded financial instruments. The events of the 21st century have made it even more critical. Top business management came under suspicion after the scandals at ENRON, WorldCom, and other business entities. In recent times, many investors have experienced difficulties from bubbles. The most spectacular failure in the late 20th century was probably that of Long-Term Capital Management,1 but that was only a precursor to the more comprehensive failure of technology firms during the dotcom bubble around 2001. The global financial community suffered the 2007 subprime crisis of the banking industry, the Fannie Mae and Freddie Mac crisis in secondary US mortgage markets, Lehman Brothers’ failure, Merrill Lynch’s takeover by Bank of America, and industry-giant AIG applying for emergency financial support from the Federal Reserve. The financial world’s failures include the Barings Bank collapse in 1995, as well as the Long-Term Capital Management and subprime mortgage bubble implosion already mentioned.

Suggested Citation

  • Desheng Dash Wu & David L. Olson, 2015. "Financial Risk Management," Palgrave Macmillan Books, in: Enterprise Risk Management in Finance, chapter 3, pages 15-22, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-46629-7_3
    DOI: 10.1057/9781137466297_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sisimonda Kinya Mwanja, 2021. "Effect of operational and market risk exposures on financial performance of DT-Saccos in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(5), pages 107-118, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-137-46629-7_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.