CORPORATE FINANCE AND RISK MANAGEMENT

Abstract

This review research paper aims to analyze the interplay between corporate finance and risk management in modern business environments. It explores the strategies, tools, and frameworks used by corporations to manage financial risks effectively. The paper is grounded in theories of corporate finance, risk management, and financial economics. It integrates concepts such as capital structure, financial leverage, risk assessment, hedging, and financial modeling. The methodology involves a comprehensive literature review of scholarly articles, books, and industry reports related to corporate finance and risk management. It also includes case studies and empirical analyses to provide practical insights. The paper synthesizes key findings on the relationship between corporate finance decisions and risk management practices. It highlights the importance of aligning financial strategies with risk tolerance levels and market dynamics. The research contributes to the understanding of how corporations can optimize their financial structures while effectively managing risks. The practical implications include guiding financial managers in making informed decisions, while the social implications relate to promoting financial stability and resilience in business sectors. This paper offers a unique perspective on the integration of corporate finance and risk management, emphasizing the value of proactive risk mitigation strategies and financial resilience in today's competitive business landscape.