Risk Management and Hedging Strategies: Catastrophic Events Can Highlight the Importance of Risk Management and Hedging Strategies for Investors

EasyChair Preprint 12507

Abstract

This paper explores the significance of risk management and hedging strategies for investors, with a specific focus on their importance in the context of catastrophic events. Catastrophic events, such as natural disasters, economic crises, or geopolitical conflicts, have the potential to cause severe disruptions in financial markets and investments. The abstract highlights the key findings and implications of the paper.

The paper begins by defining risk management and hedging strategies, emphasizing their role in identifying, assessing, and mitigating risks. It emphasizes the importance of these practices in preserving capital, minimizing losses, and ensuring business continuity during catastrophic events. The identification of various risks, including financial, operational, market, and legal risks, provides a comprehensive understanding of the challenges faced by investors.

The study examines different approaches to risk mitigation, such as risk avoidance, reduction, transfer, and acceptance, highlighting their applicability in managing risks associated with catastrophic events. It also delves into the concept of hedging strategies, including futures contracts, options contracts, swaps, and forwards, and explores their role in managing risks posed by price fluctuations, currency risks, and interest rate risks.

Keyphrases: Business Continuity, Capital preservation, Hedging strategies, Market risks, Minimization of losses, Operational risks, Risk Mitigation, catastrophic events, financial risks, investors, risk management

@booklet{EasyChair:12507,
  author    = {Klaus Hubert and Abdul Jawwad},
  title     = {Risk Management and Hedging Strategies: Catastrophic Events Can Highlight the Importance of Risk Management and Hedging Strategies for Investors},
  howpublished = {EasyChair Preprint 12507},
  year      = {EasyChair, 2024}}