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Navigating the Choppy

Waters of Finance: A
Creative Look at the
Types of Financial
Risks
Introduction

Finance can be a stormy sea to navigate.


This presentation takes a creative
approach to explore the types of financial
risks that can arise in any business. Get
ready to set sail!
Market Risk
Market risk is the risk of losses in
financial markets due to movements in
market prices. This can include interest
rates, exchange rates, and stock prices.
It's important to diversify your portfolio
to minimize market risk.
Credit Risk

Credit risk is the risk of loss due to a


borrower's failure to make payments on a
loan or other debt. This can be minimized
by evaluating creditworthiness before
lending money and monitoring
borrowers' repayment behavior.
Operational Risk

Operational risk is the risk of loss due to


internal failures such as system
breakdowns, fraud, or human error. It's
important to have strong internal
controls and to continuously monitor for
potential risks.
Liquidity Risk
Liquidity risk is the risk of loss due to
inability to meet cash flow needs. This
can be minimized by maintaining
adequate reserves and diversifying
funding sources.
Conclusion
Navigating the choppy waters of finance requires
creativity and preparation. By understanding the
types of financial risks and taking steps to minimize
them, businesses can stay afloat and thrive in any
market conditions.
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