Risk Management
Risk Management is process of making decisions relative to potential investments and risk carried by those investments, and finding the way to handles those investments in the best possible way.
Risk management consists of risk identification, risk analysis and risk preservation or acceptance.
Risk Management is present in every decision-making action by investor of financial institutions, because the main goal is to gain the highest possible returns on an investment for smallest possible exposure to risk.
| Related Terms: Diversification Reversal Arbitrage |