In: Finance
Think about where you work now or a place in the past and the business environment there. What do you feel is the number one financial risk, either systematic or nonsystematic? Summarize your description of the financial risk. How would you work to mitigate this risk?
Non systematic risk is number one financial risk.
Financial risk are risks of return of stock which includes the
systematic risk and unsystematic risk. Systematic risks are risk
which affect the entire economy or all industries. This risk cannot
be mitigated .
Unsystematic risk are company specific or industry specific risk
which can be diversified.
It can reduced or mitigated by investing in negatively correlated
stocks.This will help in diversifying the risks.