Risk glossary

 

Market risk

Market risk is the risk of losses on financial investments caused by adverse price movements. Examples of market risk are: changes in equity prices or commodity prices, interest rate moves or foreign exchange fluctuations.

Market risk is one of the three core risks all banks are required to report and hold capital against, alongside credit risk and operational risk. The standard method for evaluating market risk is value-at-risk.

See also FRTB.

Click here for articles on market risk.

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here