Can financial risks be managed using traded financial instruments?

 

Technically say, they just transfer the risk and build a risk chain. Then suddenly, they all collapse like a scaffolding.

Clarke's First Law:
When a distinguished but elderly scientist states that something is possible, he is almost certainly right. When he states that something is impossible, he is very probably wrong.
Clarke's Second Law:
The only way of discovering the limits of the possible is to venture a little way past them into the impossible.
Clarke's Third Law:
Any sufficiently advanced technology is indistinguishable from magic.