Tag Archives: Anit Rai

Derivatives Market & Risk Management

Monika Rai
Management Department
The Global Open University NAGALAND
Kishan kumar Rai
Computer Department.CMCA
Teerthankar Mahaveer University
Anit Rai
Teerthankar Mahaveer University, Moradabad


Derivatives are investments that depend on an underlying security based on some future date. Since it is difficult to predict when something will occur, derivatives are seen as something of a gamble. As a result, many liken derivatives to a lesson in how to manage risk. Risk is the uncertainty an investor experiences regarding the outcome of an investment. Risks abound and can be due to many unforeseen and uncontrollable factors. Investors typically balance risk by making sound financial goals and objectives, managing the allocation of the investment portfolio and by selecting investments based on individual appetite for risk. Risk management is the total process of identifying, measuring, and minimizing uncertain events affecting resources. This paper was written to help in the objective analysis of the risk management process. The office of Management and Budget circular no. A-130 dated
February 8, 1996 states:-