Financial risk and risk management

For the first time in a very long time (perhaps ever!), the concept of financial risk and risk management has
become a topic of concern at Presidential press conferences. Such concern has centered on esoteric financial
products such as derivatives that are used to manage risk.
What is the significance and importance of sound business decision-making in risk and risk management in
business? What are some considerations businesses examine when evaluating risks related to capital
investments? How might these risks be mitigated to ensure a proper rate of return on investments?