Hedging is an essential part of existence; one could almost say we think its one of the characteristics which make mankind special. This capability of ours to plan for the time to come, to make sure that all the choice outcomes that may occur in the future are addressed. In the event you are successful in doing this then you may also be successful in life.

The alternative to hedging is to stay at in the present moment and never take into consideration the future, to stay at well when this you are aspiring well and also to suffer if life is going badly. From one extreme to the next.

Hedging is focused on not putting all your eggs in one basket. Or should you use Roulette, not putting all your hard earned cash one number, but spreading it over several numbers therefore improving your odds.
No - this is not hedging, hedging is making sure it one thing fails, then you are also doing something else that can have automatic benefits in order to risk equals out in total.

Hedging in Roulette may be to start betting on black as well as on red! It will not help as the chances are stacked against you but doing business, wherein the odds are loaded in your favour, this might help a lot.

If you look at this from the Casino's perspective, they hedge their bets by getting numerous punters to bet on one roll of the Roulette wheel. This way the victor who they need to pay out to is cancelled out immediately by the losers of the rest of the punters; by this means the Casino cannot loose. To add to this the Casino adds a maximum bet and a minimum bet meaning there may be even less risk.

When it comes to business not only that but this is what you may strive for you. To ensure that no matter what happens you are in anyway in profit, and the best first step is simply by ensuring your workers are hedged.

Specifically what does it mean to have the workers hedged?

Here there are numerous aspects take a look at, and each is hedged in a special way.

So the primary question is which personnel bring in the most financial gain? It is because here is where your major risk is. The following question is how much will it cost to replace this profitable worker and how much time should it take? This calculation ought to be made to determine your real risk.

So each time you extrapolate your future earnings you should say, X is the plausible profit for the year to come, but when we lose a few of our workers then it could be as low as Y.

Of course this risk might be hedged, then you will be able to say exactly what you profit ought to be for the year to come.

You may hedge this risk right now with Keyman Insurance, so in case that one of your most profitable workers gets sick, becomes disabled or even dies, this will have a confine impact on your corporation's bottom line.