Risk management in investment banking

Abstract

Finance theory did well to teach to build an outlet for advising firms on how to utilise hedges. Unfortunately, its noteworthy flaw is the inability to properly explain or offer logical solutions to essential concerns before initiating a hedging plan. When it comes to hedging, for example, it doesn't address whether or not a particular strategy should include full hedging or what kinds of instruments should be utilised to implement it. It is the purpose of this research to establish a broad framework for analysing corporate financial risk management utilising multiple tools. It also discusses the arguments for and against financial risk management using a variety of tools. Financial risk management is an essential technique that those in charge of managing public finances should continue to adopt or abandon completely, according to the results of the research.