the most cost-effective ways to transfer risk?

janis · Apprentice Joined: 16 Aug 2007 Posts: 3

I am looking for cost effective ways to transfer risks that are undertaking in a company as part of the every day activities and investments of a company. I know that it is possible to lessen risks and to divert them somehow, but I would like to get other peoples' views on how this can be best achieved?

scarlet · Apprentice Joined: 24 Apr 2008 Posts: 6

Well, there are a lot of ways to go about risk management and I think that hedging is probably the method which is most commonly used, and it tends to be very effective indeed, providing that the hedging is correctly done. There are natural hedges or ones that are put in place through the use of complicated financial instruments.

alexandr154 · Apprentice Joined: 09 Apr 2007 Posts: 2

I think that risk can never be completely taken away, but it can be hedged against, or diverted. And this is what most companies choose to do. Having said that, these strategies are never fail safe either, and when one is in business (or just in life, full stop) some risk has to be accepted!