What is Risk?

The chance that an investment's actual return will be different than expected. Risk includes the possibility of losing some or all of the original investment. 

Financial risk is divided into the following categories: 

1.Basic risk, 

2.Capital risk, 

3.Country risk, 

4.Default risk, 

5.Delivery risk, 

6.Economic risk, 

7.Exchange rate risk, 

8.Interest rate risk, 

9.Liquidity risk, 

10.Operations risk, 

11.Payment system risk, 

12.Political risk, 

13.Refinancing risk,

 14.Reinvestment risk,

 15.Settlement risk, 

16.Sovereign risk, and 

17.Underwriting risk.