Different types of risk in finance

Question

Accepted Answer

Different types of risk in finance include market risk, credit risk, liquidity risk, operational risk, and legal risk.

Market risk refers to the potential for losses due to changes in market conditions, such as fluctuations in interest rates, exchange rates, or stock prices.
Credit risk is the risk of default by borrowers or counterparties, leading to potential losses for lenders or investors.
Liquidity risk is the risk of not being able to buy or sell assets quickly enough to prevent losses or meet financial obligations.
Operational risk involves the risk of loss resulting from inadequate or failed internal processes, people, or systems, including fraud, errors, or disruptions.
Legal risk refers to the risk of legal actions or regulatory penalties that could result in financial losses for a company.

Accepted Answer

34risks namely market risk , credit risk , liquidity risk and operational risk

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