Case Study:
Hedging is defined as a way of guarding against financial loss. In the more practical world it also is used as an alternate strategy to guard against other probable losses. As an example, hiring an extra program designer in the highly competitive area of military design might be a hedge against the increasing amount of job jumping to more lucrative positions.
1. How could hedging be used in other risk areas? Is it always a good strategy? Are other strategies more suited to protecting against loss?