@ Interest Rate Risk is the risk that the relative value of a security, especially a bond, will worsen due to an interest rate increase. This risk is
commonly measured by the bond's duration.
@ Credit risk is the risk of loss due to a debtor's non-payment of a loan or other line of credit (either the principal or interest (coupon) or both)
@ Liquidity risk arises from situations in which a party interested in trading an asset cannot do it because nobody in the market wants to trade that asset. Liquidity risk becomes particularly important to parties who are about to hold or currently hold an asset, since it affects their ability to trade.
@ Volatility risk in financial markets is the likelihood of fluctuations in the exchange rate of currencies. Therefore, it is a probability measure of
the threat that an exchange rate movement poses to an investor's portfolio in a foreign currency. The volatility of the exchange rate is measured as standard deviation over a dataset of exchange rate movements.
@ Operational risk1 is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.
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