HEDGING

SPECULATION &
EXPOSURE MANAGEMENT

SANJU SHARMA
 HEDGING

Hedging is a risk management technique that

focuses on minimizing and eliminating the risk
of uncertainty. It helps in limiting losses that
may occur as a result of unforeseeable
variations in the price of the investment. It is a
typical strategy used by stock
market participants to protect their assets from
losses.
 SPECULATION

Speculation is a form of active

investing that involves making and
acting on market predictions — it
comes with high risk, but also the
chance for substantial gains on short-
term investments.
 EXPOSURE MANAGEMENT

Exposure management refers to the set of

strategies and practices employed by
individuals, businesses, and financial
institutions to identify, quantify, and
mitigate various types of financial risk
exposures.
 EXPOSURE MANAGEMENT

Here are the key components of exposure management:

Risk identification
Quantification
Mitigation strategies
Monitoring and adjustments
Compliance and reporting
THANK YOU