The financial service industry in India consists of various Financial Institutions (FIs) such as finance companies, commercial banks, securities funds and investment banks, mutual funds and insurance companies etc. The basic function of these financial institutions involves channelising public money in a profitable manner by bearing sufficient risk and in turn distributing profits by the way of interest and dividends to the investors. In the first chapter of this book role of financial institution has been discussed. Focus of the Book We have written this first edition of Financial Risk management with the following objectives: 1. To create financial risk awareness among young finance managers, students of various professional courses in finance discipline. 2. To demonstrate the readers that the subject of Financial Risk Management is interesting, challenging, simple to understand and very much relevant in practice. 3. To explain the concepts and theories of Financial Risk Management in the simple manner so that the interest of readers is developed in subject. 4. To provide a comprehensive knowledge about the Financial Risk Management at one place to the readers. 5. To attract more students and professional to choose Financial Risk Management as career. 6. To help the risk managers to understand the logics of risk management in a better way. The Financial Risk Management combines theory and practical applications.