Essentials of Financial Risk Management

CHAPTER 3

Financial Risk Management Frameworks

Introduction

A risk management framework is where a corporation generally begins its implementation of a formalized risk management strategy. There are a variety of pros and cons to have a financial risk management framework. Likewise, there are a wide variety of suggested frameworks available, and in this chapter we will also put forward our suggested framework. However, we believe it is only common sense that a framework should be developed by the managers of an organization to fit the specific risk management needs and objectives of their organization. As such, each risk management framework should be unique to the organization, rather than a cookie-cutter one-size-fits-all that is promoted by ...