In the ever-evolving landscape of the global economy, the effective management of financial risks has become a critical imperative for businesses engaging in international operations. As companies expand their reach across national borders, they are confronted with a multitude of financial risks that can significantly impact their performance, profitability, and long-term viability. This article delves into the complexities of financial risk management in the context of international business, exploring the various types of risks, strategies for mitigation, and the role of regulatory frameworks in ensuring the stability and resilience of multinational enterprises

Risk management, managing system, effective strategies

(Dong, 2023). Therefore, another phrase that could be used for defining financial risk management is ‘survival management’.

Implementing financial risk management (FRM) is indispensable for firms that engage in international business, as it helps safeguard the company’s operations against undesired financial events and protect its value

(Zhao et al., 2022). As the number and severity of financial crises have proliferated in recent decades

(Maggiori, 2021), risk management has emerged as a consistent practice in international companies due to increased uncertainties arising from volatile exchange rates, interest rates, and prices.

Guthrie B.K. Beyond Investment Protection: An Examination of the Potential Influence of Investment Treaties on Domestic Rule of Law, 45(4) New York University Journal of international Law and Politics 1151 (2013).

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