Hedging the risks of interest rate fluctuations

• Using forward rate agreements to hedge the risks of interest rate fluctuations
• Using interest rate swaps to hedge the risks of interest rate fluctuations
• Hedging the risk of interest rate fluctuations by buying or selling interest rate options

Hedging the risks of exchange rate fluctuations

• Familiarising oneself with foreign exchange transactions
• Hedging foreign exchange risks via a forward foreign exchange transaction
• Hedging foreign exchange risks by buying or selling call and put options

Covering counterparty risk

• Covering risks associated with international trade (documentary credit and letters of credit)
• Covering the risks associated with meeting third-party commitments using bank guarantees

Covering risks by taking out insurance

• Insuring persons involved in the business
• Insuring property and expenses linked to the business
• Insuring liability related to business activity