In the monetary world, threat management is the procedure of identification, evaluation and recognition or mitigation of uncertainty in funding decisions. Essentially, threat control happens whilst an investor or fund supervisor analyzes and tries to quantify the capability for losses in an investment, inclusive of a moral hazard, after which takes the precise action (or inaction) given the fund's investment targets and danger tolerance. Risk control takes place everywhere in the realm of finance. It takes place whilst an investor buys U.S. Treasury bonds over company bonds, whilst a fund manager hedges his forex exposure with forex derivatives, and when a bank plays a credit score check on an person before issuing a non-public line of credit score. Stockbrokers use economic instruments like alternatives and futures, and money managers use strategies like portfolio diversification, asset allocation and position sizing to mitigate or correctly manage risk. Inadequate risk control can result in severe outcomes for companies, individuals, and the economy. For example, the subprime mortgage meltdown in 2007 that helped cause the Great Recession stemmed from bad chance-management decisions, along with lenders who prolonged mortgages to individuals with poor credit; funding companies who bought, packaged, and resold these mortgages; and price range that invested excessively within the repackaged, however nevertheless risky, mortgage-backed securities (MBS).