Risk management

The practice of identifying, measuring and limiting exposures that could cause losses. In a portfolio it uses tools such as position sizing, diversification, hedging and loss limits.

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Related terms

Risk measures

• Active tail hedging
• Conditional value at risk
• Customer acquisition cost
• Fat tails
• Long-tail risk
• Regulatory compliance
• Skewness
• Stress testing
• Tail-risk diversifiers
• Value at risk