Financial risk management is a branch of risk management, a special management function and a new management science developed on the basis of previous risk management experience and modern scientific and technological achievements. Financial risk management refers to the identification, measurement, analysis and evaluation of various risks existing in the financial management process of business entities. And take timely and effective measures to prevent and control, and deal with it in an economic, reasonable and feasible way to ensure the safe and normal development of financial management activities and ensure that their own economic interests are not lost.
The definition of risk management is the same as that of risk, and academic circles at home and abroad have different views. Traditionally, risk management is one of the six management functions of enterprises. This view comes from henri fayol, a famous French management theorist. In his book General and Industrial Revolution published by 1949, Fei Yao believes that risk management is one of the basic activities of enterprises. However, the scope of "safety activities" in Fei Yao's book is far smaller than the current "risk management activities". Gleason, an American risk management scientist, emphasized the importance of risk management to enterprises as organizations in his book Financial Risk Management, and put the content of risk management into practice.