Before investing time in methods to assess and reduce risk it is essential for the analyst to be aware of what the financial risks can be and what their consequences are. Risk to the financial market can be described as the chance of experiencing a negative and unexpected outcome due to market fluctuations. These risks may result from an inadequate flow of cash inflow management or lower-than-expected revenue-related in risk projects. They may be triggered by many reasons like: Poor project management. A high amount of debt. Changes in exchanges or interest rates. Investments or market transactions that have high levels of risk project. Insufficient information to make a decision. Financial Risk Management is among the main concerns of any company across all fields and geographical regions. This is why the exam is called FRM Financial Risk Manager, also called Financial Risk Management Test, and is getting a lot of attention from experts in the field of finance around the world. FRM is the highest qualification for professionals in risk management around the world. Financial risk management in project management is again the foundational concept of the FRM Level 1 examination. Before gaining a thorough understanding of the strategies to manage risk and the management of risk projects, it is crucial to understand the meaning of risk and also what the different types of risk are. Let's look at different types of risks in this article.