The Relationship Between Risk Management Practices and Investment Performance in the Context of OPEC and OPEC+
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Saudi Digital Library
Abstract
Investing in a complicated market structure where it is managed by what economists refer to as a cartel can be
challenging since the movement of the market can be unpredictable. Also, the application of the risk management practices can be beneficial in such market once the investor comprehends how the market operate. This literature will present the Relationship between risk management practices and investment performance in the context of OPEC and OPEC+.
Description
Investments tend to be exposed into different types of risks in all markets, although the severity of risks faced varies from a sector to another but the need of practices and tools to diminish or deal with these risks is crucial. The Oil industry is such a complicated market to operate and invest in due to its special structure. As the market has a monopoly structure being controlled by what economists call “The OPEC and OPEC+ cartel” who control the production of the products in the market. Hence, control the stakeholder’s activity.
Keywords
Risk Management, Investment, Hedging strategies, Decision Making, Analysis, Risk, Portfolio Management