Operational Risk- Biggest risk faced- people, process and system risk- faced by traders

Ethics risk, fraud risk

People problem: buy ke jagah sell, call/put, Bid/ask, MR calculation wrong

Need to skill up to the point to hire new people

Process problem- sequencing problem (like in trading there is a sequence of first going for MR then
all those 5 steps. One mistake in that step, it will have disaster facing)

System outage

Liquidity Risk

Market Risk- sharpe ratio-price and liquidity risk

Credit risk- convexity and negative convexity