International finance | international finance
Secondary , one could also take advantage of diversification techniques by investing in multiple asset classes in order to reduce volatility. Additionally , purchasing insurance policies or setting aside capital into special reserve funds is another way for one to safeguard themselves against any sudden losses.
Ultimately , the decision whether or not a firm should hedge depends on various factors such as budget limitations and their overall risk appetite . By taking all of these elements into consideration one can then decide which strategy would be most beneficial for them