Question

What is the primary objective of Financial Risk Management?

a.

To increase exposure to financial risks

b.

To speculate on future financial risks

c.

To reduce the firm's exposure to future financial risks

d.

To create instability in the balance sheet position

Posted under IC 89 Management Accounting

Answer: (c).To reduce the firm's exposure to future financial risks Explanation:Financial Risk Management aims to identify, analyze, evaluate, and manage current and possible future financial risks with the objective of reducing the firm's exposure to these risks and stabilizing its balance sheet position.

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