Capitalist institutions include risk management schemes that provide insurance, hedging, and diversification.

Whereas guarding against uncertainty had traditionally been a moral issue, hedging against risk is a purely technical question.

Back in the early 1980 s, financial engineers invented portfolio insurance, a fancy active hedging strategy for controlling downside risk.

so we're hedging our bets here.

Investors, of course, are hedging their bets.

The fund could also be used to transfer risk abroad, by taking advantage of the world hedging market which, for a fee, provides insurance against unexpected revenue fluctuations.

It took a long time, but the contagion of a sound financial idea has been unmistakable. GDP linked bonds would also allow hedging the risk of inflation, plus respond to GDP growth.

They thus provide an important instrument for hedging price risks in commodity markets.

Nevertheless, the West appears to be hedging its bets by sustaining contacts with the opposition.

But, while such hedging is natural in world politics, modesty is important for both sides.

In the event of an increase in a commodity s price, a finance minister who has done a perfect job of hedging export price risk on the futures market will suddenly find himself accused of having gambled away the national patrimony.

These investors can, in turn, be encouraged when financial hedging devices and financial diversification protect them.

But it would be a mistake to focus only on the hedging part of American strategy.

In part, this reflects political hedging by the MILF in the face of Manila s incapacity to make meaningful concessions.

But currency values are driven by macroeconomic developments, and therefore FX does offer natural hedging opportunities in liquid and transparent markets.

Unfortunately, when global stock markets crashed in October 1987, the insurance turned out to be useless, mainly because markets for hedging collapsed.

At the same time, oil hedging not only raises oil prices but results in huge reserves of cash in oil producing countries.

There has been a longstanding discussion about whether new derivative markets, which provide such financial hedging, tend to increase preexisting financial markets volatility.

Two waves of strikes in 1988 forced General Jaruzelski s government to negotiate with Solidarity, which, after a few months of hedging, was legalized.

For example, we need stronger consumer protection for retail financial products, stricter disclosure requirements for new securities, and better designed vehicles for hedging risks.

Ever since Copenhagen, a majority of the main greenhouse gas emitting countries have been setting out ambitious goals without hedging them with restrictive conditions.

But, for economists who actively engage the public, it is hard to influence hearts and minds by qualifying one s analysis and hedging one s prescriptions.

Other players on the grand chessboard of Asian geopolitics also are seeking to formulate new equations, as they concurrently pursue strategies of hedging, balancing, and bandwagoning.

GDP risk is a long term risk.

There has been a longstanding discussion about whether new derivative markets, which provide such financial hedging, tend to increase preexisting financial markets volatility. The consensus is that they do not.

Proposals to create an international fund to counteract price hikes in futures markets, for example, might divert speculators from trading and thus lower the market liquidity available for hedging purposes.

Investors, of course, are hedging their bets. Having ventured successfully into emerging non democratic countries whose frailty they are starting to fear, some, out of prudence, are starting to rediscover Europe.

Companies and investors are hedging their bets by taking a few resource efficiency measures and investing in some low carbon assets, but leaving their high carbon portfolios and activities largely intact.

The chief will be responsible for risk control of the Fund's investments as a whole in terms of portfolio risk, operational risk and compliance risk, and will plan and perform the oversight of performance measurement, investment risk analysis and operational risk analysis, including risk arising from sub adviser and service provider relationships.

As a result, sovereign risk is now becoming banking risk.

The financial products being created didn t manage risk they enhanced risk.

In paragraph 66, the Board of Auditors recommended that UNFPA continue to closely monitor hedging transactions and obtain adequate information from UNDP in a timely manner, in order to ensure proper accounting of transactions.

Risk reduction

Risk factors

And while there is moral hazard risk, there is also meltdown risk.

In paragraph 66 of its report, the Board recommended that UNFPA continue to closely monitor hedging transactions and obtain adequate information from UNDP in a timely manner, in order to ensure proper accounting of transactions.

From this followed an official obligation to treat all types of risk in the monetary union bank risk or government risk as identical.

The point at which credit risk becomes exchange rate redenomination risk is ambiguous.

Then, in early 1980s, when Dr. Frank Sortino developed formal definition of downside risk as a better measure of investment risk than standard deviation, downside risk has become the industry standard for risk management.

Assessment of risk

Africa at Risk

Sovereign Environmental Risk

Risky Risk Management

States of Risk

The Bonus Risk