Financial Risk
Financial risk in aviation refers to the potential for financial loss or negative impact on an aviation organization's financial position due to various factors such as market volatility, economic downturns, fuel price fluctuations, currency exchange rate changes, and unexpected events such as natural disasters or pandemics. Financial risk management is crucial for aviation organizations to ensure their financial stability and sustainability. This involves identifying, assessing, and mitigating financial risks through various strategies such as hedging, diversification, and insurance.
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