Difference between revisions of "Financial Risk"
Wiki admin (talk | contribs) |
Wiki admin (talk | contribs) |
||
| (2 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
== Definition == | == Definition == | ||
| − | '''Financial Risk''' is a general [[Risk Type]] category that collectively applies to adverse [[Risk Event | risk events]] that lead to a financial (monetary) loss. Many risk types lead to financial loss either directly or indirectly hence the category is defined somewhat loosely | + | '''Financial Risk''' is a general [[Risk Type]] category that collectively applies to adverse [[Risk Event | risk events]] that lead to a financial (monetary) loss. |
| + | This is the probability that an outcome or investment's actual gains will differ from an expected outcome or return. Many risk types lead to financial loss either directly or indirectly hence the category is defined somewhat loosely | ||
== Examples == | == Examples == | ||
| Line 6: | Line 7: | ||
* [[Market Risk]], the risk that the observed price of property / assets will vary | * [[Market Risk]], the risk that the observed price of property / assets will vary | ||
* [[Credit Risk]], the risk that expected receivables under various contracts will not materialize | * [[Credit Risk]], the risk that expected receivables under various contracts will not materialize | ||
| + | * Other types: liquidity, actuarial, reinsurance risks | ||
| + | |||
| + | == See Also == | ||
| + | * [[Non-Financial Risk]] | ||
| + | * [[Risk Taxonomy]] | ||
Latest revision as of 15:55, 22 May 2021
Contents
Definition
Financial Risk is a general Risk Type category that collectively applies to adverse risk events that lead to a financial (monetary) loss. This is the probability that an outcome or investment's actual gains will differ from an expected outcome or return. Many risk types lead to financial loss either directly or indirectly hence the category is defined somewhat loosely
Examples
The primary examples of risk types that are included under financial risk are
- Market Risk, the risk that the observed price of property / assets will vary
- Credit Risk, the risk that expected receivables under various contracts will not materialize
- Other types: liquidity, actuarial, reinsurance risks
See Also
Disclaimer
This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.
