Financial Risk Management Tools and Tactics
Responses to Risk
Before beginning a discussion of the various tools and tactics used to manage financial risks, it is instructive to review the range of possible responses to financial risks. It is appropriate to realize that there is a range of responses to risk: eliminate, avoid, mitigate, ignore, embellish, and embrace.1 These responses range from weak (mitigate, embellish) to neutral (ignore), to strong (eliminate, embrace), and also reflect the philosophy that risk can be positive as well as negative. Just as the responses to risk have a range, so too do the financial risk management tools. Furthermore, just as it is important in any type of craftsmanship to choose the right tool for ...
Get Essentials of Financial Risk Management now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
