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Open Access Journal Article

Risk Management Strategies in Financial Analytics

by Sophia Taylor 1,*
1
Sophia Taylor
*
Author to whom correspondence should be addressed.
MAD  2023 5(1):37; https://doi.org/10.69610/j.mad.20230212
Received: 5 January 2023 / Accepted: 11 January 2023 / Published Online: 12 February 2023
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Abstract

The field of financial analytics has become increasingly complex with advancements in technology and the global interconnectedness of financial markets. Risk management is a crucial aspect of financial analytics, as it ensures the stability and profitability of investment portfolios. This paper explores various risk management strategies employed in financial analytics and assesses their effectiveness. The study begins by providing an overview of the fundamental principles of risk management, highlighting the importance of understanding risk exposure and the role of financial analytics in identifying and mitigating risks. Subsequently, the paper delves into specific strategies such as diversification, hedging, value at risk (VAR) analysis, and stress testing. Each strategy is discussed in detail, emphasizing the benefits, limitations, and practical applications. Furthermore, the paper examines the challenges faced by financial analysts in implementing these strategies, including data quality issues, model risk, and regulatory compliance. Finally, the paper concludes with recommendations for improving risk management practices in financial analytics, emphasizing the need for continuous monitoring, adaptation, and innovation.

Keywords: Financial Analytics; Risk Management; Diversification; Hedging; Value at Risk.;
Copyright: © 2023 by Taylor. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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APA Style
Taylor, S. (2023). Risk Management Strategies in Financial Analytics. Management Analytics and Decision, 5(1), 37. doi:10.69610/j.mad.20230212
ACS Style
Taylor, S. Risk Management Strategies in Financial Analytics. Management Analytics and Decision, 2023, 5, 37. doi:10.69610/j.mad.20230212
AMA Style
Taylor S. Risk Management Strategies in Financial Analytics. Management Analytics and Decision; 2023, 5(1):37. doi:10.69610/j.mad.20230212
Chicago/Turabian Style
Taylor, Sophia 2023. "Risk Management Strategies in Financial Analytics" Management Analytics and Decision 5, no.1:37. doi:10.69610/j.mad.20230212

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ACS Style
Taylor, S. Risk Management Strategies in Financial Analytics. Management Analytics and Decision, 2023, 5, 37. doi:10.69610/j.mad.20230212
AMA Style
Taylor S. Risk Management Strategies in Financial Analytics. Management Analytics and Decision; 2023, 5(1):37. doi:10.69610/j.mad.20230212
Chicago/Turabian Style
Taylor, Sophia 2023. "Risk Management Strategies in Financial Analytics" Management Analytics and Decision 5, no.1:37. doi:10.69610/j.mad.20230212
APA style
Taylor, S. (2023). Risk Management Strategies in Financial Analytics. Management Analytics and Decision, 5(1), 37. doi:10.69610/j.mad.20230212

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