What are different types of Risks?
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Answer Posted / jyot s k
mainly there r two types of risks systematic and
unsystematic risk.. systematic risk is the risk that cannot
be reduced or predicted in any manner and it is almost
impossible to predict or protect yourself against this type
of risk. Examples of this type of risk include interest rate
increases or government legislation changes. The smartest
way to account for this risk, is to simply acknowledge that
this type of risk will occur and plan for your investment to
be affected by it.
Unsystematic risk is risk that is specific to an assets
features and can usually be eliminated through a process
called diversification.. under this there r some risks that
are-
business, financial, liquidity, exchange rate,country and
market risks..
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