Acta Universitatis Danubius. Œconomica, Vol 4, No 1 (2008)

The Financial Instruments for Risk Management on the International Financial Markets

Alina Hagiu


The international financial market is extremely volatile because of the influence of a numerous objective and subjective factors. Because of these, in their fight for maximizing the profit, the credit institutions confront permanently with all sorts of risks. It is important to know that the risk is generated by numerous operations and procedures. From these cause, at least in the financial field, the risk must be considered as a complex web of risks, in the sense that they can have common causes, and producing a risk can generate a chain reaction that would lead to other risks. As a consequence, these operations and procedures can permanently generate an exposure to the risk. The risk management is the key function of the financial institution, which acts on the international financial market. For doing this, it must be used some important instruments that can lead to avoiding risks or dimensioning them.


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