Risk management and derivatives play a crucial role in the financial industry, allowing organizations to mitigate potential losses and optimize returns. As global financial markets become increasingly interconnected and complex, the ability to effectively manage risk is more important than ever. This article explores the key aspects of risk management and the use of derivatives, offering insights into how these tools can safeguard investments and enhance financial strategies. Derivatives are financial instruments whose value is derived from an underlying asset, such as stocks, bonds, commodities, or currencies. They are commonly used for hedging risks, speculating on future price movements, or…
