Managing Risk & Performance through Derivatives in Financial Management

Abstract

The purpose of the current paper is to analyse the evolving risk landscape that has prompted a more deliberate emphasis on risk management. The current paper explores the relevance and importance of derivatives in managing risk and illustrate how different tools can be employed to tackle different types of noticeable risk. The paper opines that the Investors should incorporate a methodology for utilizing derivatives to handle risk as a part of their investment managing approach. The nature of the paper is conceptual in nature, the application of derivatives in industry for minimising risk and enhancing performance has been extensively discussed using facts and examples.