What causes financial crisis? How did the financial crisis affect the economy? How do businesses deal with financial crisis? A financial crisis is generally defined as any situation where significant financial assets – such as stocks or real estate – suddenly experience a sharp decline in value. They are often preceded by periods of economic boom and overextension of credit to borrowers. Contributing factors to a financial crisis include systemic failures, unanticipated or uncontrollable human behaviour, incentives to take too much risk, regulatory absence or failures, or contagions that amount to a virus-like spread of problems from one institution or country to the next. Don’t you think that financial crisis can affect the business adversely? So, isn’t it essential that we need to know and learn how to stop the financial crisis? Don’t we have to prepare our business in advance? Let’s learn more about the concepts of financial crisis, shall we?

Prachi Garg

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