Street view of Murrick Head Office.

Financial Risk Management

Home » Comprehensive Planning » Financial Risk Management

Financial risk management is a process that aims to protect an organization’s economic value by managing its exposure to financial risk. This typically involves managing risks associated with operations, credit, market fluctuations, and more specific types of risks.

Financial risk management aims to identify, analyze, and address potential risks to ensure businesses’ economic stability and sustainability. This requires implementing strategies to mitigate the impact of adverse events on the organization’s financial health.

Techniques We Use to Manage Financial Risk

In financial risk management, various techniques are employed to mitigate risk, including:

  • Avoidance: Identifying and avoiding activities or investments that carry excessive risk to the organization’s financial well-being.
  • Retention: Organizations often accept and retain risks through contingency funds or self-insurance.
  • Sharing: Collaborating with other parties, such as through joint ventures or insurance arrangements, to spread the risk.
  • Transferring: Transferring risk to a third party, usually by purchasing insurance or derivatives.
  • Loss Prevention/Reduction: Proactively implementing measures to reduce financial losses
A laptop and some paper forms on a clipboard with hands in view.

Why is Financial Risk Management Important?

Financial risk management is crucial for businesses and individuals as it helps in:

  • Protecting Assets: Financial risk management involves identifying and mitigating potential risks to protect assets and financial well-being.
  • Enhancing Stability: Effective risk management ensures financial stability and resilience, contributing to sustainable operations even in adverse conditions.
  • Improving Decision-Making: Organizations must clearly understand potential risks and take the necessary steps to address them to achieve the best financial results.

Contact us today to discuss the financial risk management service that best fits your needs!

Find Your Nearest Insurance Agency


Brad R

I have been dealing with Francis for many years and cant say enough great things! He has been wonderful to deal with for myself and my family and I would highly suggest contacting him for any insurance needs!


I wish to express my appreciation for Alan Ying who has been very helpful and supportive and his professionalism in helping me in getting my auto insurance on my new Tesla. Thank you ❤️

Nick Sterms

I flew all the way to vancouver from Calgary to pickup a truck being gifted to me. I had some issues with my documents and this location was able to deal with them. I am very thankful for that or I would have had to go back to Calgary empty handed. I didn’t get the man’s name that dealt with me but he seemed like he owned the business. He got things done and was very professional. I highly recommend this location.

Latest From Our Blog