To explain perhaps only from a Tibetan Buddhist perspective, but my personal interpretation on this thing....
Milarepa a very devoted person to the dharma was in solitary retreat for many years.
At one point he was beset by a demoness who refused to leave his cave.
This is what she said...
"Unless your dualisstic thought manifests itself as your enemy
Due to your own inner delusion,
How can this cave demoness become your enemy?
Besides, this demoness of your hidden delusion
Originates from your own mind.
Unless you realize the mind's intrinsic nature
I shall not leave just because you asked me to."
It is stated....All one's mental clinging to the concept of malicious spirits is but the manifestation of one's own mind.
Milarepa of course shortly after that did realize his intrinsic nature and the demoness of course disappeared.
To my personal view we create the circumstance of such's existance by our tendencies
and habitual inclinations. So thusly a approach that affects these things may be a approach that provides a final conclusion to any such problems.
Personally I find these things have not much real power at all. All they have is what we give them. That is how they affect us in this realm. So basically there is not much to worry about except the worrying itself. Many are intrigued by such beings but really they have little inclination for the spiritual and thusly they are quite dull and unintelligent. Though they may have certain powers to affect us they must get their power to do such from ourselves.
When I think of demons, I think of perhaps a crooked investment banker who hurt others in his human life rebirths as a demon through his habitual inclination to harm and profit.....now who would find such a being interesting.....none really.
So basically I would just ignore the investment banker rebirth....he is of no importance and can really harm us in very very small ways..make things go bump in the night for instance. If we take that bump to be a big deal.....it becomes a big deal.
If you want specific ceremony or empowerment or some such dharmic protection, very many are available from a lama, and some are quite popular. Be advised to obtain such often involves continuing to practice such for the duration of ones life(at least in part). So be careful in what you receive and what you are willing to practice or else you may break samaya and cause a problem for yourself.
I practice one myself in part, but mainly I no longer fear those investment bankers but the enlightened beings elicited by such practice they have enterouages who are not enlightened.
They are not enlightened so they may get quite sad if one receives empowerment and does not perform it....so to make them happy(buddhas or other enlightened beings care not of such things) I perform them.
I go to places to sing mantra to spirits and such as they are also quite deluded...fear them....actually I pity them, mostly they are so stupid, they think they will live forever but alas....they will not. So sad are they.
The founder of Chod a group that works with demons advises generally to speak softly to them they are often frightened by loud noises. So perhaps we can be compassionate to them. I give them smoke so they, some of them, can eat it....so sad are they. You must name them however or else they cannot so do.
Don't hang with them though....just by their foul nature you can sometimes develope hives and skin problems.....those poor poor things.
So dreams...laugh at them, like things going bump in the night they cannot harm us. They see no influence...you wait them out and pure sleep or great dreams will ensue.....so don't worry a bit.
I may not even be buddhist, am just a layperson with little experience and littler knowledge.... but I advocate strongly....don't fear the invesment bankers....not a whit.
People romanticize them mostly, they are not as we make them seem...inept buffones mainly, and very very sad.
I took now a walk in the forest and remembered this thing so I thought I would add it....
I have very little understandings and many others probably may offer better advice but I have done this thing in my small small way.. working with dreams is a very advanced practice I know nothing about...
but this....If you suspect these are perhaps real things chasing you in your dream..
perhaps try as I did years ago...going to sleep with intention of running away slowly.
When and if they do appear run but slowly...they will catch you.
When caught you will be able to turn and look at them.
you will find probably as I find they are not frightening more surpriseing is like it
expect one change in form to scare you
that of course will not work as your intention was to be caught not run away
they will then let go as if they were fire and you were water
treat them with great compassion and do not hunt them or follow them
they are now in great fear.
If you then wake and seem to feel they are around in some form, if it will not bother any other humans.... sing dharma mantra softly with clear voice in the context of you sitting in emptiness if that is possible. If that context is not possible just sing it(any short mantra will do).....it may be the only exposure to dharma they have ever had and it may be all it takes to start them on their spiritual path.The buddha after all in a very past life was a very lowly demon beast, the lowest of the demons before he began his path.
It may be hard to get back to sleep but this is not going to happen to often so it is no big deal. Eventually the excitement will wear off and you will probably doze off. It can be quite invigorating. Thusly some use these circumtances to work with mind, but that is another issue.
So I have done that and advocate for that for a person like me with no means and little understandings. Of course others may have much better suggestions, and you may have much greater capacity. But you asked...so that has been my approach. I would call it a very lowly human approach to the thing of demons in dream...
Posessions...a chod practice does that sort of thing.... intentionlly in controlled environment under the direction of a lama..... The body is offered as food in one case(there are differing types of meals) to particularly offensive demons that are inclinded to eat humans. Personally I don't care for that thing....I can't see as it helps them much, it seems to reinforce their negative habitual inclinations but maybe not. Basically I just don't like it much. Helpful to humans certainly.... as it reduces attachemnt to this body and reinforces compassion....so who knows.
In some aspects of chod it seems demons may be essentially directed to funtion at humans command and some such.....that seems not compassionate, and I have nothing they could do for me or to others, nothing I want... so what do I care for that? I always personally approach them as I may help them and want absolutely nothing from them. If I did not, my compassion in their regard would seem tainted. Mostly I think they do not know it and though stinky smelly and rash/sickness producing they are to be around just being demons....compassion is what they need, no strings attached. So dharma song makes most sense to me.
Thought I would add that after walk in forest..
"This order considers that progress can be achieved more rapidly during a single month of self-transformation through terrifying conditions in rough terrain and in "the abode of harmful forces" than through meditating for a period of three years in towns and monasteries"....Takpo Tashi Namgyal.