Hedging and Human capital: Difference between pages

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1.
The skills, knowledge and experience of an individual or population, regarded as a resource or asset.  


Traditionally hedging refers to the process whereby a firm uses financial instruments (such as forward contracts, futures contracts or options) or other techniques to reduce the impact of fluctuations in such factors as the market price of credit, foreign exchange rates, or commodity prices on its profits or corporate value.
Human capital encompasses:
*Investing in people, for example, education, training and health; and
*The belief that these investments increase an individual’s productivity.




2.
The World Bank's Human Capital Project defines human capital as the knowledge, skills, and health that people accumulate over their lives, enabling them to realise their potential as productive members of society.


The application of hedging  techniques has been extended to the management of many other risks including for example inflation and longevity risk arising in pension funds.


==See also==
* [[Assets]]
* [[Capital]]
* [[Intangible assets]]
* [[Natural capital]]
* [[Social capital]]
* [[World Bank]]


== See also ==
* [[Arbitrage]]
* [[Authorisation]]
* [[Authority limits]]
* [[Basis risk]]
* [[Buy-side firm]]
* [[CertFMM]]
* [[Covering]]
* [[Dealer]]
* [[Delta hedging]]
* [[Effective]]
* [[Foreign exchange forward contract]]
* [[Futures]]
* [[Guide to risk management]]
* [[Hedge accounting]]
* [[Hedge fund]]
* [[Inflation risk]]
* [[Interest rate guarantee]]
* [[Longevity]]
* [[Macro hedging]]
* [[MCT]]
* [[Option]]
* [[Outturn]]
* [[Overhedging]]
* [[Pre-settlement risk]]
* [[Reduce]]
* [[Risk response]]
* [[Sell-side firm]]
* [[Speculation]]
* [[Transfer]]
* [[Uncovered]]
* [[Underhedging]]
* [[Warehousing]]


==External link==
[https://www.worldbank.org/en/publication/human-capital The World Bank's Human Capital Project]


===Other links===
[[Category:The_business_context]]
 
[[Category:Ethics]]
*[[Media:2015_05_May_-_The_devil_is_in_the_detail.pdf| The devil is in the detail, The Treasurer, 2015]]
 
*[http://www.treasurers.org/node/8925 Harness your hedges, The Treasurer, April 2013]
 
*[http://www.treasurers.org/node/4592 Falling foul of currency hedging, John Grout, ACT 2009]
 
*[http://www.treasurers.org/node/689 Interest rate hedging: demand the proof, The Treasurer, 2008]
 
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]

Revision as of 09:13, 2 August 2020

The skills, knowledge and experience of an individual or population, regarded as a resource or asset.

Human capital encompasses:

  • Investing in people, for example, education, training and health; and
  • The belief that these investments increase an individual’s productivity.


The World Bank's Human Capital Project defines human capital as the knowledge, skills, and health that people accumulate over their lives, enabling them to realise their potential as productive members of society.


See also


External link

The World Bank's Human Capital Project