The Corporatization of the NGOs and How It Impacts Funders, Beneficiaries, and Others
The Corporatization of NGOs and the Opinions of Experts In recent years, the NGOs or the Non Governmental Organizations have been corporatized as far as their mode of operation and processes are concerned. This is especially the case with those NGOs that rely on Big Ticket funding as well as are run by extremely wealthy […]
Solvency Regulations in the Insurance Industry
In the previous article, we have explained why regulation is important for the insurance industry. We have also understood how the focus of regulation has changed from merely restricting prices to protecting the rights of the consumer. In this article, we will have a closer look at the solvency regulations i.e. the rules regulators create […]
Enterprise Risk Management (ERM) vs Traditional Risk Management
Enterprise risk management (ERM) is a buzzword that has been doing rounds in the risk management field for the past few years. It is often used by managers in a context that implies that it is wider in scope than the traditional risk management function. However, the number of risk management professionals who do not […]
Work Culture – Meaning, Importance & Characterics of a Healthy Culture
An organization is formed to achieve certain goals and objectives by bringing individuals together on a common platform and motivating them to deliver their level best. It is essential for the employees to enjoy at the workplace for them to develop a sense of loyalty towards it. Work culture plays an important role in extracting […]
Sensation and the Sensory Organs (Gustation, Olfaction, Somatosensation, Proprioception and Kinesthesia)
Gustation (Sense of Taste) The gustatory system comprise of three crucial parts: the mouth, tongue and also the taste buds which helps us in perceiving the sense of taste. Both the gustatory system and the olfactory system (sense of smell) follow chemoreception process. The process of Chemoreception allows the human sense organs to interpret the […]
In stock market there is strong relationship between risk and return. Greater the risk, greater the return generally! In financial terminology risk management is the process of identifying and assessing the risk and then developing strategies to manage and minimize the same while maximizing the returns.
Every investment demands a certain amount of risk and for an investor to assume this risk he has to be compensated duly. This compensation is in the form of something called as the risk premium or simply the premium. Risk is therefore central to stock markets or investing because without risk there can be no gains. Successful investors use stock market risk management strategies to minimize the risk and maximize the gain.
In financial markets there are generally two types of risk; first the Market Risk and second the Inflation Risk.
The inflation risk is an important consideration in long term investments where as the market risk is more relevant in the short term. It is the market risk that can be managed and controlled to a certain extent, inflation risk cannot be controlled.
There are certain strategies that can be employed to mitigate the risk in a stock market. The strategies are as follows:
Ask Warren Buffet, the greatest investor of all time, what is your advice to investors and he says ‘don’t lose money!’ But stock market connotes risk and fortunately there are enough strategies for a wise investor to safeguard his money and ensure gain. A careful and timely exercise of these options helps you see of the risk involved.
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