Description: Financial risk management in the context of FinOps and cloud cost optimization refers to the process of analyzing the financial risk exposure that may arise from the adoption and use of cloud services. This approach involves identifying, assessing, and prioritizing the risks associated with infrastructure and service costs in the cloud, as well as developing strategies to mitigate those risks. Financial risk management is crucial for organizations looking to maximize the value of their cloud investments, ensuring that costs are not only manageable but also aligned with the strategic objectives of the business. Key characteristics of this management include continuous monitoring of expenses, forecasting future costs, and implementing governance policies that regulate the use of cloud resources. The relevance of this practice lies in its ability to help companies avoid unpleasant financial surprises, optimize resource usage, and ensure that cloud spending decisions are made in an informed and strategic manner.
