What are different types of Risks?

Answer Posted / mike

Risk is divided into two components, one measured in
monetary impact and usually refered to as Earnings
Volatility Risk and the other which is measured in indirect
impact, usually refered to as Governance Risk (including
corporate governance issues, reputational issues, etc).

Earnings Volatility Risk is divided into nine primary risk
types:
Market Risk (including price risk, exchange rate risk,
interest rate risk, etc)
Credit Risk
Liquidity Risk
Operational Risk (includes legal risk, IT risk, natural
disasters and non-compliance risk)
Insurance Risk (also Underwriting Risk or Perils Risk)
Environmental Risk
Strategic Risk (includes political risk
Business Risk
Systemic Risk (failure of the entire system)

Is This Answer Correct ?    1 Yes 5 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Explain the role of chief actuaries?

655


Can you suggest me some good reference books on ADR/GDR/IDR which covers history, objectives, problems, theory and workings of GDR.

1952


What is EMI? Have you ever purchased any product on EMI? How convenient is it?

621


Names Different Types of Debentures According to Security?

628


How is technology useful in banking sector?

635






Name Different Kinds of Debentures According to Redemption Point of View?

652


What is more important work or money?

618


Name the majority stack subsidiary of rbi.

583


Do you know the currency of different countries?

662


What is NATO? List some members of NATO?

677


What are the different types of accounts in a Bank?

599


Have you faced any failure in life? If yes, how did you overcome it?

632


Why do you want LIC?

621


What Is Efficient Market Hypothesis?

669


Why should a business prepare fund flow statement?

568