Financial Risk and Risk Management

The attitude towards financial institutions to risk has changed gradually from the traditional guarantee to the positively reacting to risk, while implementing effective business stragegy of income in- crease and appropiate and risk management. For the purpose of adapting to this transition, this paper first- ly comments on types of financial risk, then studies risk management carried out by financial institutions, and finally discusses the signifinance and forecasting tools of financail risk management.