Bizhunt - An online tabloid on financial risk management | Finance Blog

Risk management - what is it? What does it imply? Risk is basically the probability that something unpleasant will occur when it comes to investment. It is the consciousness that you may lose your invested cash. It is simple to connect risk with finances, and all sane investors would want to remove losses from the investment equation. Unfortunately, that isn't how the market operates. Losses are a part of the investment game, and all investors can do is try to avoid it as much as possible. If you're new to the finance world, here's what you need to know. Asset Allocation Asset allocation and hedging are two prime strategies investors practice to manage risk. Asset allocation comprises shifting a portion of your investment to a more conservative one, such as bonds, and distancing them from riskier options like shares if you feel that the market may be in for a drop in the next few years. Normally, if you feel the market is heading uphill and economic conditions are be...

The ppi scandal has another £1bn added to it. Lloyds Banking Group has announced an additional charge of £1bn for the covering of redress costs which raises the company’s total to £5.3bn with more guaranteed. Customers who had become victims of the mis-selling of payment protection insurance have not only brought a living nightmare on the bailed out Lloyds Banking Group but other high street banks have to incur ppi scandal combined costs over £10bn. The Royal Bank of Scotland has added £400m to its already massive £1.3bn compensation charge.