derisks
Derisking is a term used in finance and business to describe the process of reducing or eliminating potential financial, operational, or strategic threats. This can be achieved through various strategies and practices aimed at mitigating uncertainties and safeguarding assets or future earnings. The primary goal of derisking is to create a more stable and predictable environment for an organization or investment.
In investment management, derisking often refers to adjusting a portfolio to lower its exposure to volatility
For businesses, derisking can encompass a broader range of activities. This includes implementing robust internal controls
The concept of derisking is not about avoiding all risk, as risk is inherent in most business