Market risk definition - Risk.net (2024)

Risk glossary

Market risk

Market risk is the risk of losses on financial investments caused by adverse price movements. Examples of market risk are: changes in equity prices or commodity prices, interest rate moves or foreign exchange fluctuations.

Market risk is one of the three core risks all banks are required to report and hold capital against, alongside credit risk and operational risk. The standard method for evaluating market risk is value-at-risk.

See also FRTB.

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Market risk definition - Risk.net (2024)
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