The Different Type of Risk

May 20th, 2009 Comments off
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In earlier article, we understand the many benefits accrued from managing risk. In this article, we move on to understand the different  type of risk, a business can be involved with.

Broadly speaking, risk can be grouped into the following type:



1.0 Market Risk which relates to business environment, industry,  political situation,

      2.0  Liquidity Risk which relates to cash-flow, funding, capital,

3.0 Credit Risk which relates to customers’ reputation, settlement, accounts, payment,

      4.0 Operational or Process Risk which relates to the systems, policies and procedures, internal controls and management supervision


Click here for the importance or benefits derived from Managing Risks


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