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Risk Management

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Description

The process of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events.

Risk Management in finance involves identifying, analyzing, and taking steps to mitigate or accept risks associated with investment decisions. Effective risk management strategies include diversification, setting stop-loss orders, and using derivatives for hedging, aiming to protect investments from adverse market movements.

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