Financial Risk Management in Investment during the Era of Global Economic Uncertainty

Abstract

This study aims to analyze the role of financial risk management in maintaining stability and strengthening investment resilience amid increasing global economic uncertainty and financial volatility. Employing a library research approach combined with content analysis, this study systematically reviews academic and empirical literature published over the past five years, focusing on the dynamics of financial risk, investment decision-making behavior, and the influence of digital transformation on modern risk management systems. The findings reveal that the effectiveness of financial risk management depends on the integration of advanced data analytics, organizational risk culture, and adaptive economic policies that can anticipate and respond to global market fluctuations. Furthermore, digital transformation through the application of artificial intelligence, machine learning, and big data analytics has significantly improved the accuracy of market risk detection, modeling, and early-warning systems. Overall, this study highlights that modern financial risk management functions not only as a loss prevention mechanism but also as a strategic approach to enhance resilience and ensure the long-term sustainability of investment systems.