Types of risk – financial point of view

Types of risk – financial point of view

1) Systematic Risk - Systematic Risk are those risk which are inherent in system and which affect most of the sector, industries or company... 11:25 PM

1) Systematic Risk - Systematic Risk are those risk which are inherent in system and which affect most of the sector, industries or company. In this diversification is not possible. It is also known as non- diversification, market risk or non- avoidable risk. Ex- inflation risk, change in general price, interest rate risk, exchange rate risk, natural calamities, political risk, risk associated with policy of the Government, risk associated with scamp etc. 2) Unsystematic Risk - Unsystematic Risk are also known as specific risk, diversiable risk, or residual risk is the type of uncertainty that comes with the company or industry you invest in. it can be reduced through diversification. These risks are unique in nature. It may be industry oriented or sector oriented