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Risk & Types Of Risk
Presented By -:
Kanhu Charan Sahoo
 What is Risk
 Types of Risk
a) Systematic Risk
b) Unsystematic Risk
Other Risk
Risk & Types Of Risk
Contents
What Is Risk ?
Risk is any uncertainty with respect to your
Investments that has the potential to negatively
impact your financial welfare .
Risk & Types Of Risk
Risk
Systematic Risk
(Unavoidable)
Unsystematic Risk
(Avoidable)
Market Risk
Interest Rate Risk
Purchasing Power Risk
Business Risk
Financial Risk
Credit Default Risk
Risk & Types Of Risk
Systematic Risk
 Systematic risk is also known as “Un–diversifiable risk” .It is
the risk inherent to the entire market or market segment .
 It arises due to macro economic factors & it affects the overall
market ,not just a particular stock or industry .
Types
Market Risk
Interest Rate Risk
Purchasing Power Risk
Risk & Types Of Risk
Unsystematic Risk
 Unsystematic risk is also known as “Specific Risk” .It is the
type of uncertainty that comes with the company or industry you
invest in .
 It arises due to the micro economic factors and it can be
reduced through Diversification .
Types
Business Risk
Financial Risk
Credit Default Risk
Risk & Types Of Risk
Other Risk
In addition to above major risks there are many more risks
associated with investment in foreign securities .
These risks are Monetary value risk ,political Environment
risk etc .
Risk & Types Of Risk
Risk & Types of Risk By Kanhu.pptx
Risk & Types of Risk By Kanhu.pptx

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Risk & Types of Risk By Kanhu.pptx

  • 1. Risk & Types Of Risk Presented By -: Kanhu Charan Sahoo
  • 2.  What is Risk  Types of Risk a) Systematic Risk b) Unsystematic Risk Other Risk Risk & Types Of Risk Contents
  • 3. What Is Risk ? Risk is any uncertainty with respect to your Investments that has the potential to negatively impact your financial welfare . Risk & Types Of Risk
  • 4. Risk Systematic Risk (Unavoidable) Unsystematic Risk (Avoidable) Market Risk Interest Rate Risk Purchasing Power Risk Business Risk Financial Risk Credit Default Risk Risk & Types Of Risk
  • 5. Systematic Risk  Systematic risk is also known as “Un–diversifiable risk” .It is the risk inherent to the entire market or market segment .  It arises due to macro economic factors & it affects the overall market ,not just a particular stock or industry . Types Market Risk Interest Rate Risk Purchasing Power Risk Risk & Types Of Risk
  • 6. Unsystematic Risk  Unsystematic risk is also known as “Specific Risk” .It is the type of uncertainty that comes with the company or industry you invest in .  It arises due to the micro economic factors and it can be reduced through Diversification . Types Business Risk Financial Risk Credit Default Risk Risk & Types Of Risk
  • 7. Other Risk In addition to above major risks there are many more risks associated with investment in foreign securities . These risks are Monetary value risk ,political Environment risk etc . Risk & Types Of Risk