Investing in the capital markets can lead to significant rewards but it also comes with a significant level of risk. These risks have an impact on the individual as well as institutional investors. These risks take many forms such as market risk, business risk, and regulatory and environmental risks. Due to this reason, the investors must have a clear understanding of the risks that they could face and what are the tools and strategies that they could adopt for managing them so that they can make informed decisions. This is also important for an investor as they could make strategic investment choices to achieve their financial goals. In this segment, we will be identifying the 20 different types of risks that are commonly associated with investment in capital markets.
- Market Risk
- Business risk
- Liquidity risk
- Credit risk
- Political risk
- Currency risk
- Interest Rate risk
- Inflation risk
- Reinvestment risk
- Systematic risk
- Non-systematic risk
- Volatility risk
- Sovereign risk
- Regulatory risk
- Event risk
- Operational risk
- Cyber risk
- Reputation risk
- Environmental risk
- Social risk
