One of the basic criteria of a well-developed financial system in any country is that it offers a number of means or instruments to its participants to pool, assess and change risk, it provides opportunities for risk pooling and risk sharing for both individuals and businesses. The three commonly known methods of risk management are hedging, diversification and insurance. Risk hedging or simply hedging refers to the transition from risky assets to risk-free assets. Derivatives in financial markets are used for this purpose, for example, a futures contract is used as a hedging device. Diversification means not putting all your eggs in one basket which groups and subdivides the risk even if this does not eliminate the total risk, it helps to reduce the risk by redistributing it. Insurance, at the price of the insurance premium, allows the insured to maintain economic benefits by guaranteeing the expected benefits..