A Study on Challenges and Opportunities of Financial Risk Management for Micro, Small and Medium Enterprises in Nashik District, Maharashtra.

Micro, Small and Medium Enterprises (MSMEs) constitute the backbone of the Indian economy, contributing approximately 30 percent to GDP and employing over 110 million people. Despite their significance, MSMEs in Nashik District, Maharashtra, face formidable challenges in managing financial risks, particularly credit risk and market risk. This study in-vestigates the financial risk management landscape of MSMEs in Nashik District, employing a mixed-methods approach integrating primary survey data from 180 MSME owners with sec-ondary data from government and Reserve Bank of India publications. The findings reveal that 67 percent of surveyed MSMEs lack any formal risk management framework. Credit access diffi-culty emerged as the most perceived financial risk (mean score 4.35 on a five-point Likert scale), followed by market volatility at 3.92. The study identifies significant opportunities through digital financial tools, government credit guarantee schemes, and fintech solutions. Statistical analysis confirms a significant association between enterprise size and formal risk management adoption (χ² = 18.42, p < 0.01). The paper concludes with recommendations for policymakers, financial institutions, and MSME owners.