STRATEGIC REASONS FOR HEDGING Financial guarantees serve an important function for virtually every player in the global economy - households, businesses, and governments.

RISK AND UNCERTAINTY Some people don't distinguish between risk and uncertainty. Risk is seen as the phenomenon which arises from circumstances where we are able to identify the possible outcome ever their likehood of occurrence without being sure which will actually occur. Uncertainty describes the position where we are not able to identify all of the possible outcomes, and we are still less able to assessment their likehood of occurrence. ATTITUDES TO RISK We can …

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