Financial risk refers to the possibility of losing money or facing unfavorable financial outcomes due to uncertain market conditions or specific events. It encompasses various types of risk, including credit risk (the risk that borrowers will not repay loans), market risk (the risk of losses due to market fluctuations), operational risk (the risk of loss from failed internal processes or systems), and liquidity risk (the risk of not being able to meet short-term financial obligations). Financial risk can affect individuals, companies, and entire financial systems, and it is a critical consideration in financial planning and investment decisions. Managing financial risk involves assessing potential risks, diversifying investments, and implementing risk mitigation strategies to minimize potential negative impacts on financial performance.
### Caution Sign for Investors The financial scene is heating up as a surge in various risk assets prompts concerns from prominent strategist Michael Hartnett regarding a possible bubble. Recently,…