An investment and a method for hedging operational risk associated with another's business events is disclosed. In particular, the method includes a seller receiving consideration from a buyer and, in return for the consideration, making a payment to the buyer upon the occurrence of a predetermined event. The event payment is for a predetermined amount and may be related to an expected economic loss to the buyer if the predetermined event occurs. The predetermined event is related to a complete or partial success or failure of a reference entity's product, service, or product and service, and may or may not cause an economic loss to the buyer.