A survey of the world's 500 largest companies found that almost all the companies use derivatives in some way to manage their risk.What is the most common risk category that derivatives are used for managing risk?

Question

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Interest rate risk is the most common risk category that derivatives are used for managing risk. This is because interest rate fluctuations can have a significant impact on a company's financial results, especially those with large amounts of debt or highly sensitive revenue streams. Derivatives such as interest rate swaps and options can be used to hedge against adverse changes in interest rates, thereby protecting a company's financial position.

A Survey of the World's 500 Largest Companies Found That