Risk Management for Financial Contracts

This article  focus to explain Risk Management for financial contracts. Risk management is the identification, assessment, and prioritization of risks as well as coordinated and cost-effective application of resources to minimize, monitor, and control your probability and/or result of unfortunate events or maximize the recognition of opportunities. Essentially, risk management occurs anytime an investor or fund director analyzes and attempts to quantify the likelihood of losses in an investment after which takes the ideal action given their particular investment objectives as well as risk tolerance. Inadequate risk management could lead to severe consequences for companies as well as individuals.