Final answer:
The true statement about financial risk is that it can be partially addressed through insurance, although not all financial risks can be easily insured against. Enterprise risk includes financial risk among other types of risks, and financial risks vary across different financial assets and require careful consideration by investors.
Step-by-step explanation:
The statement that is true about financial risk is that financial risks can be addressed, albeit not 'easily', through the purchase of insurance. Financial risks involve the possibility of losing financial capital or assets due to events that affect the overall financial health or specific transactions. This is distinct from enterprise risk, which includes, but is not limited to, financial risk, and refers to the broader spectrum of risks that an organization might face, such as operational, strategic, compliance, and reputational risks.
To address financial risks, companies and investors can use various financial instruments. While insurance products can mitigate certain types of risk, like property damage or liability, they do not cover all financial risks, such as market volatility, credit risk, or interest rate risk. Additionally, some financial risks can be managed through hedging strategies or diversification of investments. It's crucial for investors to consider the level of risk in different types of financial assets and their own risk tolerance, potential returns, liquidity needs, investment horizon, and tax considerations.