Financial Risk Management

6. What type of risk involves the possibility of a borrower defaulting?
7. What risk is associated with the potential for an asset to lose value due to inflation?
9. What risk refers to losses resulting from natural disasters?
11. Which type of risk arises from changes in the political environment?
12. What risk is associated with the chance of financial markets declining?
14. Which risk involves losses due to changes in the economic environment?
15. Which risk involves potential harm from new technologies or cyber threats?
17. What type of risk is related to fluctuations in interest rates?
18. What type of risk is linked to fluctuations in commodity prices?

1. Which type of risk arises from operational failures such as system breakdowns?
2. What type of risk is associated with incorrect or misleading financial information?
3. What risk pertains to the inability to sell assets quickly without significant loss?
4. What risk pertains to the potential for a security to be affected by market fluctuations?
5. Which risk pertains to the failure of a counterparty in a financial transaction?
8. Which risk is related to investments in emerging markets?
10. What type of risk is associated with ethical breaches and governance issues?
13. Which risk involves the possibility of a significant financial loss due to unforeseen events?
16. Which risk involves losses due to changes in currency exchange rates?