Abstract
<jats:p>The article examines the theoretical and applied aspects of risk management as a key condition for ensuring the efficiency of financial markets in the context of increasing global volatility, financial crises, and regulatory transformations. The relevance of the study is driven by the growing level of uncertainty in financial markets, the intensification of systemic risks, and the need to develop effective mechanisms for their identification, assessment, and mitigation. In the context of the integration of global financial systems and the rapid development of financial innovations, risk management is becoming strategically important both for individual financial institutions and for regulators. The aim of the study is to substantiate the theoretical foundations and identify practical mechanisms of risk management as a determining condition for maintaining the efficiency of financial markets. The methodological framework is based on system and comparative analysis, as well as content analysis of international regulatory standards and academic publications. The paper analyzes modern approaches to the classification of financial risks (credit, market, operational, and systemic) and determines the role of the institutional environment in ensuring market stability. The results of the study confirm the existence of a cause-and-effect relationship between the quality of risk management systems and the level of efficiency of financial markets, manifested through indicators of liquidity, information transparency, and investment attractiveness. It is established that the implementation of comprehensive risk management mechanisms, including stress testing, centralized clearing, risk monitoring systems, and enhanced capital adequacy requirements, contributes to reducing systemic imbalances and increasing the resilience of the financial system. Particular attention is paid to the role of international standards (Basel III, IOSCO) in shaping the modern architecture of risk regulation. The scientific novelty of the study lies in the development of a conceptual model of the relationship between levels of risk management (micro-, meso-, and macro-levels) and indicators of financial market efficiency. The practical significance of the results lies in their applicability in regulatory practice, the development of risk management strategies for financial institutions, and the enhancement of the efficiency of financial markets under conditions of instability.</jats:p>