Coverage

Coverage in the risk management process refers to the scope of protection, usually measured in percent of the operational risk, provided by a marketing strategy.

For example, if the operation will be marketing 10,000 bushels of corn, and has already signed a contract to physically sell 5,000 bushels of corn, they are covered on 50% of the production. This operation can consider various strategies to lock-in coverage on the remaining 50% of the corn.

Terminology

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