1. Maximise Expected return subject to tolerance to risk
2. Risk Vs Return
   1. Take more risks if you expect more return
   2. Total Risk
      1. Unsystematic risk
         1. Specific risks
      2. Systematic risk
         1. Market Risks
   3. Return
      1. Expected return
      2. Historical returns
   4. Riskiness of returns
      1. Standard Deviation
      2. Variance
3. Process
   1. Objectives
   2. Identify Risks
   3. Risk Evaluation
   4. Policy Development
   5. Strategy Development
   6. Implementation
   7. Review
4. Approaches
   1. Avoidance
   2. Loss Control
   3. Combination
   4. Separation
   5. Transfer
   6. Retention
   7. Sharing
5. Creation of Exposures
   1. Purchase Managers
   2. Sales Managers
   3. Engineers
   4. HR Managers
   5. Logistics Managers
   6. Divisional Presidents
6. Guidelines
   1. Common Goal
      1. Risk Management &
      2. Financial Management
   2. Proper Mix
   3. Proactive Management
   4. Flexibility
   5. Optimisation
   6. Substitution
7. Tools
   1. Hedging
   2. Forwards
   3. Futures
   4. Options
   5. Swaps
   6. Hybrid Debt Securities
8. Managing Risks
   1. Business Risks
      1. BP's Insurance Strategy
   2. Currency Risks
   3. Interest Rate Risks
      1. External
      2. Internal
   4. Asset Liability Management