TRANS Asian Journal of Marketing & Management Research (TAJMMR)
Year : 2019, Volume : 8, Issue : 3and4
First page : ( 5) Last page : ( 13)
Online ISSN : 2279-0667.
Article DOI : 10.5958/2279-0667.2019.00009.9

Financial inclusion for financial risk management

Sr. Jasintha V L

Research Scholar, Assistant Professor, St. Ann‘s P.G College, Mallapur, Hyderabad, India, Email id: jessykannath@gmail.com

Online published on 10 May, 2019.

Abstract

Human beings always prefer and strive for happy situations in life and want to avoid the adverse ones. The economic climate and markets can be affected very quickly by changes in exchange rates, interest rates, and commodity prices. Counterparties can rapidly become problematic. People express risk in different ways. What is risk? Risk provides the basis for opportunity. According to the Dictionary, risk refers to the possibility that something unpleasant or dangerous might happen. Personal risks are risks that directly affect an individual and they involve the possibility of the complete loss or reduction of earned income. Financial risk is the risk arising from the changes in the values of measurable financial values. Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost. Financial inclusion broadens the resource base of the financial system by developing a culture of savings among large segment of rural population and plays its own role in the process of economic development. Further, by bringing low income groups within the perimeter of formal banking sector; financial inclusion protects their financial wealth and other resources in exigent circumstances. Life is full of uncertainties, risks and perils. And it is here that financial inclusion plays a significant role. As risk can be classified into several categories, my focus in this article is financial risk and its management through financial inclusion. Since it is not always possible to eliminate risk, understanding it is an important step in determining how to manage it.

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Keywords

Financial Risks, Financial Inclusion, Loss, Uncertainty, Financial innovation and Financial Risk Management.

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