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Risk is inherent in business and hence there is no escape from the risk for a businessman. However, he may face this problem with greater confidence if he adopts a scientific approach by dealing with risk. Risk management may, therefore, be defined as adoption of a scientific approach to the problem dealing with risk faced by a business firm or an individual. Broadly, there are five methods in general for risk management.
Systematic Risk Systematic risk is any risk which affects the value of a huge number of assets; therefore, each asset will have a various degree of sensitivity to the underlyin
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