The process of transferring risk to the capital markets through the use of financial instruments such as bonds,futures contracts,and options is knows as

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Securitization of risk refers to the process of transferring risk to the capital markets through the use of financial instruments such as bonds,futures contracts,and options. The other options, consolidation of risk and compartmentalization of risk, refer to internal risk management techniques within an organization. Avoidance of risk refers to the decision not to engage in an activity that involves risk.

The Process of Transferring Risk to the Capital Markets Through