“Risk Management”

Assess the current market risk in the U.S. and Foreign Markets, indicating how a financial manager is likely to react given the risk level determined. Provide support for your answer.
Considering the market risks of interest rate, foreign exchanges, and commodity price risk, assess the risk that you believe may have the most significant impact on a firm. Indicate how this risk can be managed effectively to minimize the effects of this risk.

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Risk Management

In the recent past, the market risk in the United States has been significantly low. This is mainly due to stabilization of the economy after the 2007/2008 recession which led to an economic downturn in most industries across the country. A law market risk in a given market is favorable for many investors since they are assured that their funds cannot get lost through losses that are associated with high market risks in various markets across the globe. However, the risk of foreign markets tends to be higher depending on the destination of the foreign market.

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