There is an important component in the process of using derivatives for managing risk: effective risk management requires an effective organizational structure. The use of derivatives for managing risk can be dangerous in the absence of proper personnel, teamwork, controls and organization. The concerns of this inscription are mostly qualitative. It is easy to neglect these more subjective factors that lead to good risk management, but they are critically important. In fact, all of the quantitative models for analytical knowledge about risk management would be lost if an organization could not implement sound risk management policies.