Market risk is the risk that the market will move against an investor’s investment
position. It is the risk faced by investors because of the fluctuations in prices of stock in
the Capital market.
Industry risk Industry
Industry risks may occur as a result of adverse government policy, technological
change, availability or otherwise of raw materials etc.
Every company operates in any country faces the risk of rules, and regulations moving
against them. Since these companies are bound to obey the laws of the country,
changes in these rules can be a significant risk which can make some companies
declare huge losses or even declare bankruptcy.
This is the probability that a company will make lower profits than it anticipates or that it
will make a loss instead of a profit. Business risk is influenced by both external and
External sources of business risk include overall economic climate, increasing
competition in the industry and government regulations while internal sources include
sales volume, input costs, productive capacity, etc.
Decline in prices of crude oil in global markets
Exchange rate volatility
External headwinds, including slower global growth and unforeseen events (e.g
Covid -19 pandemic)