Financial risk management is the practice of identifying, assessing, prioritizing, and developing actions to address financial risk. Financial services firms often manage financial risk using financial instruments. An investment in a financial instrument for the purpose of managing risk is commonly referred to as hedging.
Financial risk management organizations classify financial risk into four main types:
MATLAB is used by leading financial institutions to build models and simulations for financial risk management. With Statistics Toolbox and Financial Toolbox, you can build customized risk models, perform Monte Carlo simulations, and analyze scenarios to asses risk exposure from financial engineering and other financial activities.
Learn how MATLAB can be used for risk management 53:09 (Webinar)