Financial Risk

Uncertainty related to financial aspects of business operations, including market risk, credit risk, liquidity risk, and capital adequacy. Financial risks involve potential losses due to market movements, counterparty defaults, funding constraints, or insufficient capital to support strategic initiatives. In RBPM, financial risks are typically well-quantified, with established measurement techniques and controls. Managing financial risks involves setting clear limits aligned with the organization's overall risk appetite and ensuring that exposure remains within these boundaries.