By - Money Matters

8 Common Types of Investment Risks 

Identifying the risks you may face while investing

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Introduction to Investment Risk

The potential for losses due to financial market fluctuation

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Market Risk

The possibility that a borrower will fail to fulfill their financial obligation

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Credit Risk

The risk of not being able to quickly sell an asset at a fair price.

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Liquidity Risk

Losses due to inadequate internal processes, people, or system

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Operational Risk

Losses from lack of diversification in an investment portfolio

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Concentration Risk

Decreasing purchasing power of assets over time due to rising price

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Inflation Risk

Losses due to changes in political environment or government policies

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Political Risk

Not being able to reinvest proceeds at the same rate of return

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Reinvestment Risk

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