Primary security refers to the main asset the borrower provides to secure and safeguard the lender for the loan. It serves as the primary source of repayment in case of default.
Collateral security acts as a secondary security, supplementing the primary security to mitigate/reduce the lender’s risk further.
“Investment management is the process of management of money including investments, budgeting, banking and taxes also called as money management.” It is the strategic and systematic process of managing a portfolio of investments to meet the estimated end goals. It involves buying and selling assets, creating investment strategies, and managing risk.
Insurance is an important economic tool to manage risks and to maintain a good ratio of risks and rewards. It is a financial hedging instrument.