"hedging risks" is a correct and usable phrase in written English.
It is typically used in a financial context to refer to strategies that are used to reduce the risk of an investment. For example, "The financial advisor recommended hedging risks by investing in a mix of stocks and bonds."
Conceptual advances in pricing options and other complex financial products, along with improvements in computer and telecommunications technologies, have significantly lowered the costs of, and expanded the opportunities for, hedging risks that were not readily deflected in earlier decades.
The petitioners in the case, Bernard L. Bilski and Rand A. Warsaw, had sought to patent a method of hedging risks in the sale of commodities, including the risks associated with bad weather.
We have seen it over and over again in the Age of Greenspan: hedge funds got their name by hedging risks, but derivatives can be used to double down on risk just as easily.
Although they have useful purposes, particularly for hedging risks — as when an airline bets on increases in jet fuel prices — they frequently are used to avoid the disclosure rules applied to other financial transactions.
And it also points to another theory of the case, which is that the bank's chief investment office, far from merely hedging risks taken elsewhere in the bank, actually functioned as something like an internal hedge fund, placing huge bets on the markets and evading risk limits with which traders elsewhere in the firm had to conform.
There are also exemptions for market-making, in which the banks build up sizable positions in all sorts of securities, supposedly with the sole intention of having enough on hand to meet the demands of clients and for hedging risks taken elsewhere in the firm.
The executives argued that the so-called Volcker Rule could prevent the powerful unit from hedging risk throughout the bank.
The administration would impose much tougher regulation over the vast market for financial derivatives like credit-default swaps and other exotic instruments for hedging risk.
Novel tools for hedging risk, he concluded, had created a "far more flexible, efficient, and hence resilient financial system than existed just a quarter-century ago".
For anyone who owns Greek, Portuguese or Spanish bonds, credit default swaps are "a very efficient way of hedging risk," said Gavan Nolan, a credit analyst at Markit.
Volatility plays a vital role in derivative pricing, hedging, risk management, and optimal portfolio selection.
