Every loan, every bond, every cross‑border deal carries a quiet question: “What if things go wrong?” Banks, insurers, and corporations don’t just hope for the best—they actively measure and control the risks that could hurt their profits or even threaten their survival. In this chapter, we’ll explore the toolkit they use, from old‑fashioned credit checks to the fast‑moving world of forwards, futures, options, swaps, and credit derivatives.