115 CFA
File: Portfolio Management - Reading 55 - 3. Identification of Risks

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

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