TY - JOUR ID - 136953 TI - An Analysis of Risk Management in Financial Markets and Its Effects JO - Journal of Engineering in Industrial Research JA - JEIRES LA - en SN - 2783-3747 AU - Samimi, Amir AU - Bozorgian, Alireza AU - Samimi, Marzieh AD - Ph.D of Science in Chemical engineering, Risk Specialist of Oil and Gas Refinery Company, Iran AD - Department of Chemical Engineering, Mahshahr Branch, Islamic Azad University, Mahshahr, Iran AD - M.A in Agriculture Engineering, Food Engineer & Risk Specialist in Industries, Iran Y1 - 2022 PY - 2022 VL - 3 IS - 1 SP - 1 EP - 7 KW - Risk Management KW - capital KW - market KW - Finance KW - Stocks DO - 10.22034/jeires.2022.1.1 N2 - This study examines risk management in financial markets and its effects. Risk and capital management can happen anywhere in the stock market. This happens when an investor buys the desired stock on the stock market. Or when the manager of a financial fund with foreign currency derivatives avoids the risk of converting balance sheet assets and liabilities into foreign currency. Financial managers also use strategies such as asset allocation, portfolio diversification, and position estimation to mitigate or effectively manage risk in the stock market. Although technical analysis of risk and capital management can provide useful information, it does not completely address an investor's concerns. In the field of behavioral finance, it has contributed to an important element in the equation of risk and capital management by showing the asymmetry of how individuals' perspectives achieve profit or loss. In the language of vision theory, an area of behavioral finance was introduced by Amos Torsky and Daniel Kahneman in 1979 to show investors hatred of their losses. Feel good, suffer pressure and unhappiness about loss. This is very important in the field of stock market psychology for managing risk and capital in financial markets. UR - https://www.jeires.com/article_136953.html L1 - https://www.jeires.com/article_136953_735d3db0a8047ff489251ad908e14e7b.pdf ER -