Abstract
The risk management process is definitely marked by several steps that have to be respected in order to avoid financial risk exposure. It actually starts with the establishment of the context for strategic, organizational as well as risk management criterion according to each evaluated risk. The identification of the risks is primordial in the prevention of achieving an organization's business and strategic objectives. After a deep analysis of risks that has to be considered to assess the potential results, the probability that those effects could occur. Evaluating the risks is then strategic in order to compare risks against the firm's criterion and there is a need to balance between potential advantages and drawbacks. The next step is to treat risks through the implementation of plans, so that potential benefits can increase and costs linked to those risks can be treated. As a result, the establishment of those measures permits the risks monitor and review. Nowadays, there are no doubts that trading exposures and risks have rapidly evolved and increased in response to market changes such as financial engineering and innovation, development of the international markets, increased financial innovation, and growth of lower credit quality debt. Undeniably, risk management has consistently had trouble keeping up with the complexity and speed of the products. That is why the evolution of risk measures has led to better quantification of potential losses.
