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3. Identification of Risks

f. identify financial and non-financial sources of risk and describe how they may interact;

What are the three types of financial risks that originate from financial markets? 1. Market risk 2. Credit risk 3. Liquidity risk

What are the six types of non-financial risks that arise from actions within an entity or externally? 1. Settlement risk - one party fails to deliver the terms of a contract 2. Legal risk 3. Compliance risk (regulatory risk, accounting risk, tax risk) 4. Model risk - improperly using a model 5. Operational risk 6. Solvency risk