Definition:
Payment risk management involves identifying, assessing, and mitigating risks associated with payment processing and financial transactions.

Contextual Explanation:
Businesses use fraud detection tools, transaction monitoring, and cybersecurity measures to manage risks in payment processing.

Why It Matters:
Effective payment risk management protects businesses from financial fraud, chargebacks, and regulatory violations.

Example:
A payment processor implementing AI-driven fraud detection can identify suspicious transactions in real time, reducing financial risks.