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Financial Risk Management

Definition of "Financial risk management"

Ginger  Henderson
  Keller Williams Realty

Management of investment risks associated with business risk, interest rate risk, political risk, and purchasing power risk. Usually fixed income financial instruments, such as fixed dollar life insurance, fixed dollar annuities, and bonds, are most susceptible to business, purchasing power, interest rate, and political risks. Variable dollar life insurance, variable dollar annuities, and common stocks are most subject to business, market, and political risks.

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