A long hedge involves using futures contracts to buy inputs at a stable price, protecting against price increases.
Understanding Market Exposure in Investment Portfolios
The possibility of losing money on an investment due to factors affecting the overall market.
Maximum Drawdown is the maximum observed loss from a peak to a trough in a portfolio before a new peak is reached.
An exploration of Maximum Foreseeable Loss (MFL), a critical concept in insurance that defines the worst-case financial scenario for policyholders.
A humorous approach to understanding weigh risk against reward in investments through Mean-Variance Analysis
Model Risk is the risk of inadequate performance from financial models leading to adverse outcomes.
Understanding Modus Operandi in Criminal Behavior and Other Fields
An innovative technique used to model uncertainty and predict the probability of various outcomes.
The risk that one party may act unethically in a transaction due to a lack of accountability.
A strategy in options trading that comes with a side of risk and unlimited potential for loss, but limited profit.
Understanding the nuances of named perils insurance policies with a dash of humor.
A strategy to mitigate risk using negatively correlated assets.
Obsolescence Risk: The Risk of Being Left Behind!
An exploration of occurrence policies in insurance, focusing on coverage, comparisons, and impacts.
A financial strategy for reducing exposure and nullifying gains or losses.
Understanding Operational Risk in Business Activities
Over-Hedging is a risk management strategy where the offsetting position exceeds the original position.
A humorous look at measuring the risk of your investment portfolio using portfolio variance.
A conservative investment strategy focused on preserving capital and preventing loss.
A risk management strategy using options to protect against potential losses.
Regulatory risk is the risk that a change in laws and regulations will materially impact a security, business, sector, or market.
The insurance for insurance companies, transferring risks to maintain solvency and minimize payouts.
