Well-structured and comprehensible textbook. Current state of research on risk management. Deepening of the material through exercises. This textbook provides a comprehensive introduction to financial risk management. The presentation of the conceptual foundations includes not only a decision-theoretically grounded consideration of risk management but also institutional aspects of risk management in companies. The measurement, assessment, and control of market risks and default risks are the two main focuses of the book. In the area of market risks, the book introduces the valuation of options, futures, and swaps, including the Value-at-Risk concept and the management of market price risks through hedging strategies. The discussions on default risks cover both ex-post and ex-ante quantification of credit risks.