Equity Risk Management

Equity Risk Management involves identifying and mitigating the potential losses that can arise from fluctuations in stock prices. In the context of Market Risk Management, it focuses on the risks associated with owning shares in companies, which can be affected by factors like economic changes, interest rates, and market sentiment. Effective equity risk management employs strategies such as diversification, hedging, and continuous monitoring to protect investments from significant losses and to ensure stable returns, helping investors and institutions navigate the uncertainties of the equity markets.