Risk Management in Forex MarketsRisk Management in Forex Markets
But not all risks are created equal
. Risk management is not just aboutidentifying risks; it is about learning to weigh various risks and making decisionsabout which risks deserve immediate attention.Risk management is not a task to becompleted and shelved. It is a processthat, once understood, should beintegrated into all aspects of your organization's management.Risk management is an essentialcomponent in the successful managementof any project, whatever its size. It is a process that must start from the inceptionof the project, and continue until the project is completed and its expected benefitsrealised. Risk management is a process that is used throughout a project and its products' life cycles. It is useable by all activities in a project. Risk managementmust be focussed on the areas of highest risk within the project, with continualmonitoring of other areas of the project to identify any new or changing risks.
Managing risk - How to manage risks
There are four ways of dealing with, or managing, each risk that you haveidentified. You can:
For example, you may decide to accept a risk because the
of eliminating it completely is too high. You might decide to transfer the risk, whichis typically done with insurance. Or you may be able to reduce the risk by3