Assalaam walaikukm,
In the world of etiquette, a woman has the choice of extending her hand. Even in the world of the kufr if a lady does not extend her hand the man will gently bow his head.
The hugging and whatever are reserved for intimate settings. Women are taught in finishing schools how to stand keep your arm at your side. Should you wish to shake hands there are steps to take. In the most formal of settings a gentleman takes her hand lightly and places a very gentle kiss on her knuckles; often the lady wears gloves. His lips do not touch her..it is mere performance.