In today’s interconnected global economy, financial risk management has become a critical component of national security and sustainable development. In countries, especially small ones such as the Baltic States—Estonia, Latvia, and Lithuania—effective financial risk management is crucial to ensure the viability of the financial system, preserve economic stability, promote growth, and ensure the well-being of citizens. This section examines the importance of financial risk management in the national context, highlighting its link to sustainability and national security. It presents the theoretical and practical aspects of financial risk management, the specificities of financial instability in small countries, an overview of the main economic and financial crises affecting the Baltic States and their consequences, and a discussion of generalised resilience to financial threats.