What is Risk Management?
Definition of Risk Management: It is a procedure for mitigating the effects of certain danger threats and consists of assessment, priority of danger and identification of the risk. The ISO set has issues standards that govern all the aspects of handling the danger, which is explained as the uncertainty effect on the aims, whether negative or positive. Dangers can take place because of uncertainty in the financial market, legal liabilities, accidents, credit risk, natural disaster and cause. The plans to handle risk includes shifting the danger to the next party, avoiding the danger, lessening the negative effect of the danger and accepting a part or all the effects of a specific danger if the prices for containing the danger are not justified. There are various steps used for gaining profits. Some of them are identifying and then characterizing the threats. Secondly, assessing the susceptibility posed by the treats to expensive assets. In the Forex markets, the traders generally assess the downside danger and implement the perfect plans unless the price of hedging plans unless the price of hedging crosses the possibility of danger of loss.