Derivatives offer companies the chance to reduce their financial risk – chiefly by transferring them to someone (usually a bank) who is willing to assume and manage them. As they realize this, more and more companies are using derivatives to hedge their exposures. America’s General Accounting Office reported that between 1989 and 1992 derivative volumes grew 145% to $12.1 trillion (in terms of the notional amount represented). This does not include about $5.5 trillion of foreign-exchange forwards. Interest-rate risk was the main risk hedged – at the end of 1992, interest-rate contracts accounted for 62% of total notional, compared with 37% for foreign exchange.