FINANCIAL RISK MANAGEMENT – INFLUENCE FACTORS AND NEW TRENDS

Financial or corporate risk management is a part of the firm risk management with which deal with the financial risks, such as market risk, liquidity risk and credit risk. In the context of international financial crisis, a variety of factors are influencing the development of corporate risk management: the increased volatility and deregulation of financial markets; developments in information and communications technology; the complexity of financial products and so on. The objective of risk management for most corporates is to reduce the influence of external financial variables on the company’s earnings volatility, in the short term. This article describes the developments in financial risk management, presents the influence factors and underlines the recent trends in this field.