Authors: Dr. R. Radhika, Dr. V. Balakumar, Dr. S. Elayamurugan, and Mr. C. Gokul Krishnan

ISBN: 978-81-986247-0-3

DOI: https://doi.org/10.59646/frm/340

Date of Publication: March 26, 2025

About the Book:

The increasing complexity of global financial markets has made Financial Risk Management and Derivatives a critical area of study for professionals, academics, and students alike. This textbook aims to provide a comprehensive and structured approach to understanding financial risk, the instruments used to hedge it, and the role of derivatives in modern financial strategies.

Designed to cater to students, financial analysts, risk managers, and policymakers, this book delves into key concepts such as market risk, credit risk, liquidity risk, and operational risk, offering insights into how organizations identify, assess, and mitigate these risks. The book also explores the theoretical foundations and practical applications of derivative instruments, including futures, options, swaps, and credit derivatives, with real-world examples and case studies to bridge the gap between theory and practice.

The chapters are structured to provide a step-by-step progression, starting with the fundamentals of financial risk management and gradually introducing complex derivative strategies. To enhance the learning experience, this textbook includes illustrative examples, problem-solving exercises, and current market trends that reflect the ever-evolving nature of financial risk.

By the end of this book, readers will have a solid understanding of financial risks, the role of derivatives in hedging and speculation, and the regulatory landscape shaping risk management practices. Whether you are a student seeking foundational knowledge or a professional looking to refine your expertise, this book serves as a valuable guide in navigating the dynamic world of financial risk management.

We hope this book inspires a deeper appreciation for financial risk management and derivatives while equipping readers with the skills and analytical tools necessary for success in the financial industry.