Editing Risk management (section)

===Finance===
[[File:Risk in Banking.jpg|thumb|Risk in Banking]]
{{Main|Financial risk management}}
As applied to [[finance]], risk management concerns the techniques and practices for measuring, monitoring and controlling the  [[market risk|market-]] and [[credit risk]] (and [[operational risk]]) on a firm's [[balance sheet]], due to a bank's credit and trading exposure, or re a [[fund manager]]'s portfolio value; for an overview see {{slink|Finance#Risk management}}.
* A traditional measure in banking is [[value at risk]] (VaR) – the possible loss due to adverse credit and market events. Banks seek to [[Hedge (finance)|hedge]] these risks, and will hold [[risk capital]] on the net position. The [[Basel III]] framework governs the parallel  [[regulatory capital]] requirements, including for operational risk.
* Fund managers employ [[Financial risk management#Investment management|various strategies]] to protect their fund value; these given [[Investment management#Investment managers and portfolio structures|their mandate]] and  [[tracking error|benchmark]].
* Non-financial firms focus on [[business risk]] more generally, overlapping [[enterprise risk management]]: i.e. those events and occurrences which could negatively impact cash flow or profitability, and hence result in a loss of [[Business valuation|business value]] or a decline in [[share price]].