Cassava farming in the Niger Delta region of Nigeria faces significant challenges due to climate change, including increased vulnerability to droughts, floods, and unpredictable weather patterns. These challenges threaten food security and the livelihoods of smallholder farmers who depend on cassava production. This study focuses on how the vulnerability of the farmers can be reduced through financial risk management strategies. It relied on primary data sourced from 260 cassava farmers after which a Multivariate Probit model was used to analyse the data after its validation. It was found that off-farm jobs (0.153, p < 0.05), credit availability (0.175, p < 0.05) and farmers’ age (0.007, p < 0.05) significantly determined the decision to adopt income diversification strategies as a way of coping with climate risks; but the adoption of contract farming was significantly determined by the cassava farm size (0.067, p < 0.05), educational level (− 0.019, p < 0.05). The adoption of cautious saving was determined by the flood (− 0.120, p < 0.01) and extension contacts (− 0.242, p < 0.05). The adoption of credit facilities was influenced by high rates of pests and diseases (0.062) and credit availability (0.541), which were significant at the 0.05 and 0.01 levels, respectively. Moreover, government policies promoting climate-smart farming techniques and improving access to financial services are critical in strengthening farmers’ adaptive capacity. The study concludes with policy recommendations that emphasize the need for multi-stakeholder collaboration in implementing sustainable financial risk management frameworks to support cassava farmers, financial literacy of farmers, improved access to affordable credit, enterprise diversification, reduced dependence on a single commodity, and financial resource accessibility to be resilient. These recommendations are vital for ensuring long-term agricultural resilience and food security in the face of increasing climate variability.