There are several types of financial risks, including:

1. Credit risk: The risk that a borrower will default on their debt payments.

2. Market risk: The risk that prices of financial assets will change due to economic or geopolitical factors.

3. Interest rate risk: The risk that interest rates will change and affect the value of bonds and other investments.

4. Liquidity risk: The risk that an investor will not be able to buy or sell an investment quickly enough to meet their investment goals.

5. Operational risk: The risk that internal processes or systems fail, leading to financial losses.

6. Currency risk: The risk that the value of investments denominated in different currencies will fluctuate.

To manage financial risk, there are several strategies investors can use, including diversification, hedging, and portfolio optimization. Diversification involves spreading investments across multiple assets to reduce the impact of a single loss. Hedging involves using financial instruments like options or futures contracts to reduce the potential for financial loss. Portfolio optimization involves continually adjusting the mix of investments in a portfolio to maximize returns and minimize risk. Additionally, investors can use risk management tools such as stop-loss orders or limit orders to automatically sell investments if they reach a certain price.