High-risk investments, such as IPOs, options, and Forex, offer the potential for large returns but carry substantial dangers.

A few examples of credit risk were highlighted during the Financial Crisis: The ratings agencies then issue a letter-grade rating. AAA is the highest: It means the issuer is extremely capable of ...

Different financial statement areas carry varying levels of inherent risk. For example, complex revenue recognition calculations have a higher inherent risk than simple cash transactions.

Both dimensions of liquidity risk are interconnected and can exacerbate each other. For example, an inability to secure short-term funding (funding liquidity risk) may force an entity to sell ...

A risk assessment consists of three sections – hazard, risk and control measure. This is an example of a risk assessment. You must first identify any potential hazards. In other words ...