Hedging: meaning, definitions and examples

In a general context, it refers to the act of avoiding a clear commitment or statement to reduce risk or ambiguity.

• Politicians often resort to hedging their statements to avoid controversy

Typically used in business, finance, and project management contexts to refer to the process of identifying, assessing, and controlling threats to an organization's capital and earnings.

• Effective risk management strategies are crucial for business sustainability

Used in contexts referring to a contract or policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.

• Health insurance can help cover medical expenses in case of illness

A general term used in a wide range of situations to refer to measures or actions taken to keep someone or something safe from harm.

• Wearing a helmet while riding a bike provides essential protection

This is often used in financial contexts, or when someone is being non-committal or cautious about giving a direct answer or taking a clear position.

• She's hedging her bets with a diversified investment portfolio
• He was hedging during the meeting, not committing to any concrete plan

A more formal term used when someone speaks ambiguously or uses unclear language to avoid committing to a position or to deceive.

• The politician tended to equivocate when asked about his controversial policies
• She equivocated her response, leaving everyone unsure of what she truly meant

Often used when someone is lying or avoiding the truth in an attempt to mislead or deceive. Generally has a negative connotation.

• When asked directly, he chose to prevaricate instead of giving a straightforward answer
• The witness was prevaricating under oath, trying to hide the truth

A casual or informal term commonly used when someone is avoiding the main topic or delaying getting to the point, typically in everyday conversations.

• Stop beating around the bush and tell me what you really think
• He was beating around the bush, clearly trying to avoid the difficult questions