HEDGING THE INVESTMENT RELATED RISKS

Abstract

Risk management is the first and foremost step before any investment is made. The idea behind having a risk management plan is not to completely avoid the associated risks as the risks are bound to be there where an investment is being made but it is the need to come up with a plan to maximize the returns and reduce the impact of the risks involved.  Investment risk management is a highly complex and ambiguous process which involves several steps and varies from individual to individual, business to business, corporate to corporate and enterprise to enterprise. A highly meticulous practical framework must be put in place in order to address the challenges that arise during an investment.