In particular the Office

Joita9759

In turn, business risk is strongly correlat with the former, however, it concerns the inability to achieve adequate revenues to achieve strategic goals. Market risk This is a situation in which changes in market conditions may result in investment losses. They may concern price fluctuations, inflation ruction of real profits and increase in the cost of living, changes in exchange rates, but also unforeseen situations such as arm conflicts or epidemics. Macroeconomic risk They can also be combin with market risk. It usually refers to political events or the general economic situation in a given country or region. Interest rate risk Changing the level of interest rates affects the value of financial instruments.


Rising interest rates cause a decline in bond prices. Liquidity risk It is associat with the inability to quickly cash in on a financial philippines photo editor instrument lack of a willing buyer or seller. Risk of bankruptcy It may result in the loss of a significant part or all of your capital. Concentration risk If you invest your capital in only one financial instrument, you run the risk of losing the entire amount. Management risk The ineffective strategy of the company whose shares you purchas has a negative impact on their value.




Risk of default Applies to the so-call debt instruments e.g. bonds, in which one party to the transaction undertakes to return the entrust capital and pay interest on the issu security. Cash flow risk It probably includes fluctuations in the value of cash flows relat to the inflows, outflows and flows of financial instruments. How to manage investment risk? It is unlikely to completely eliminate the risk, it can only be limit to minimize financial losses. What should you do then? Start with virtual money - if you are just starting your adventure with investing.