Range forward and Risk response: Difference between pages

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An option hedging strategy, the same as a Collar.
A choice in relation to an identified risk which can be categorised broadly as the decision whether to:


# Avoid the risk, or
# Accept it.


== See also ==
* [[Collar hedge]]


The broad choice to 'accept' a risk can be further classified according to whether the firm then retains, reduces or transfers the risk.
Using this model, the classes of potential risk responses are therefore four, namely:
# Avoid
# Accept and retain
# Accept and reduce, or
# Accept and transfer.
==See also==
* [[MCT]]
* [[Risk assessment]]
* [[Risk evaluation]]
* [[Risk identification]]
* [[Risk management]]
* [[Risk reporting]]
* [[Transfer]]
* [[Guide to risk management]]
[[Category:Financial_risk_management]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]

Revision as of 15:38, 30 May 2016

A choice in relation to an identified risk which can be categorised broadly as the decision whether to:

  1. Avoid the risk, or
  2. Accept it.


The broad choice to 'accept' a risk can be further classified according to whether the firm then retains, reduces or transfers the risk.

Using this model, the classes of potential risk responses are therefore four, namely:

  1. Avoid
  2. Accept and retain
  3. Accept and reduce, or
  4. Accept and transfer.


See also