In an era marked by rapid technological advancements, industries worldwide are increasingly turning to artificial intelligence (AI) and blockchain technology to address complex challenges. Among these challenges, financial risk mitigation has become a critical concern for businesses, investors, and regulatory bodies alike. Traditional risk management methods often rely on manual processes and historical data, which may not fully account for real-time dynamics and emerging threats. Technological innovations such as AI and blockchain present transformative potential in this domain, offering new ways to enhance risk management frameworks. AI, with its machine learning and predictive analytics capabilities, enables financial institutions to analyse vast amounts of data, identify patterns, and predict future risks with unprecedented accuracy. By automating decision-making processes, AI improves the speed and efficiency of risk assessments, reducing human error and enhancing the ability to mitigate both operational and financial risks. Blockchain, on the other hand, offers secure, transparent, and immutable transaction records, which significantly reduce fraud, enhance compliance, and ensure data integrity in financial operations. Together, AI and blockchain create a synergy that enables real-time risk monitoring, improved auditing, and a reduction in the cost and complexity of traditional risk mitigation methods. This paper explores the integration of AI and blockchain into financial risk management strategies, examining their individual contributions and potential combined impact. By focusing on practical applications, the paper highlights case studies where these technologies have already demonstrated significant improvements in risk assessment, fraud detection, and overall financial stability. Ultimately, this work provides a comprehensive understanding of how these innovations are reshaping the landscape of financial risk mitigation.