Financial Education - Financial Risks epistemological conceptualizations
Risks are universally defined as the probability of the occurrence of a negative event that generates consequences, in this epistemological field, the concept of risk has different semantic shifts that reach the present day, the term comes from the Arabic rizq (plural al-zarh), the term appears in a scattered way, but from 1500, from the introduction of the printing press, it spreads especially in commercial and legal language.
To the point of remaining almost the same in all European languages (rischio, risk, risque...) and, at the end of the 20th century, it becomes the key concept of sociology because the question of risk crosses two central orders of the contemporary world: technology and the economy involving uncertainty.
In accordance with what is expressed by the author risks are synonymous with uncertainty, which can be controlled depending on risk management. In this regard, financial risks can be defined as the probability of the occurrence of an event with negative financial consequences for the organization.
In other words, financial risks link the negative events that may occur in the organization from the financial point of view, risk has always been present in the different periods of man's history; in 7500 years (B.C.) there was no currency and there was a risk of unfair bartering, so currency was created in response to this risk. 6000 years (B.C.) in Greece, Egypt and the Mesopotamian valley there was no accounting, therefore there was risk in business which could provoke lawsuits and wars, it was then that they began to measure the risks through accounting.
In 1700 years (B.C.) Hammurabi king of Babylon wrote the code of Hammurabi, which served to mitigate the risks of the inhabitants of that time. 575 years (B.C.) as strategic risk and its impact on the growth of micro manufacturing companies in Hidalgo, from the perspective of enterprise risk management. In response to these risks, the need to mint money arose as a response to business operations and the financial system was born.