The best way to deal with risk is to understand what you’re up against and embrace its upside. An enterprise risk management ...

Ratings agencies quantify the amount of credit risk associated with bonds so investors can understand exactly what they’re getting into. When an investor purchases a bond, they are essentially ...

Broadly, basis risk is the risk that the value of a futures contract or an over-the-counter hedge will not perfectly offset an underlying position. Other examples abound: interest futures are often ...

The three lines of defence is a risk governance framework that splits responsibility for operational risk management across three functions. Individuals in the first line own and manage risk directly.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

making them high-risk systems. However, the Commission’s preliminary view is that even in some cases where the RED foresees an opt-out from the third-party assessment, meaning when a company can ...