25-08-2017, 09:32 PM
Unsystematic Risk
Unsystematic.pptx (Size: 76.32 KB / Downloads: 29)
What is risk?
Risk: implies the extend to which any chosen action or an inaction that may lead to a loss or some unwanted outcome this is known as risk.
What is Systematic Risk
Systematic risk is due to the influence of external factors on an organization. Systematic risk is a macro in nature as it affects a large number of organizations.
Business Risk /liquidity risk
Business risk is also known as liquidity risk. It is so, since it originates from the sale and purchase of securities affected by business cycles, technological changes, etc.
Financial or credit risk
Financial risk is also known as credit risk. This risk arises due to change in the capital structure of the organization. The capital structure mainly comprises of three ways by which funds are sourced for the projects.
Operational risk
Operational risks are the business process risks failing due to human errors. This risk will change from industry to industry. It occurs due to breakdowns in the internal procedures, people, policies and systems