Investment Risk: Difference between revisions
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Definition
Investment Risk is a general term that captures the potential for adverse developments in financial investments pursued by individuals, firms or other organizations.
Investment risk is not a fundamental Risk Type. The precise meaning depends on the Investment Management context and the nature of the Investment Portfolio]. In general investment risk may encompass some combination of the below:
- Business Risk when the success of the investment is judged in terms of whether a particular Business Model is executed successfully
- Credit Risk when the investment relies on an entity (or entities) fulfilling a credit contract
- Market Risk when the success of the investments in terms of market Valuation
- Country Risk for cross-border investments
