In today's interconnected global economy, supply chains are more vulnerable than ever to financial uncertainties arising from exchange rate volatility, interest rate fluctuations, credit defaults, and disruptions due to geopolitical and environmental events. Effective financial risk management (FRM) has thus become essential to ensure operational continuity and profitability in logistics and supply chain management (LSCM). This research explores the practices of hedging and insurance adopted by logistics-driven businesses to manage such risks. Using primary data collected from financial and logistics professionals, the study evaluates the extent, awareness, and effectiveness of these practices across different sectors. The findings reveal gaps in the adoption of formal risk management tools and highlight the need for better financial literacy and integration between finance and supply chain functions.

Keywords: Supply Chain Risk, Financial Risk Management, Hedging, Insurance, Global Supply Chains, Currency Fluctuations, Risk Mitigation, Derivatives, Credit Risk, Logistics Finance