A Research on Risk Management in Financial Markets Cover Image

Finansal Piyasalarda Risk Yönetimi Üzerine Bir Araştırma
A Research on Risk Management in Financial Markets

Author(s): İsmet Bolat
Subject(s): National Economy, Financial Markets
Published by: Özgür Yayın Dağıtım Ltd. Şti.
Keywords: Financial Markets; Risk Management; national economies;
Summary/Abstract: Financial markets have a very important role in national economies. Money markets and capital markets, which are the components of this market, are important markets that direct capital in the country. These markets undertake important functions for both individual investors and institutional investors. For the development of the country's economy, it is desired to increase the number of investments and projects. However, companies will need new resources for a new investment here. It is more difficult to reach these needed resources in underdeveloped and developing countries. Insufficient savings and insufficient production can be cited among the reasons for this lack of resources. In addition, even if they reach sufficient resources in the markets, companies cannot reach the level of efficiency they want in some cases due to some risks. First of all, we can divide the risk types that cause the efficiency of the firms to decrease by negatively affecting the firm's activities as systematic risk and unsystematic risk. The type of risk that affects the whole economy and that companies cannot intervene alone means systematic risk, and the type of risk that companies can reduce by taking some measures refers to non-systematic risk. Of course, systematic risk and non-systematic risk are divided into a number of sub-branches and can affect companies in different dimensions. Firms should correctly identify the type of risk that causes failure in their own activities, which reduces their efficiency, and after this determination, they should take some measures to eliminate or minimize the effect of this risk type. Here, first of all, the risk should be defined correctly and the type of risk should be determined. After the identification of the risks, measures should be taken to minimize or eliminate the negative effects of this risk. Firms can benefit from a number of methods while struggling with risks. In finance, the Capital Asset Pricing Model is a model used to determine the theoretically appropriate required rate of return for an asset to make decisions about adding assets to a well-diversified portfolio, and since unsystematic risk can be eliminated, the return of a risky investment will be in return for the systematic risk taken.

  • Page Range: 139-159
  • Page Count: 21
  • Publication Year: 2023
  • Language: Turkish