{"id":10001,"date":"2023-02-13T18:10:59","date_gmt":"2023-02-13T12:40:59","guid":{"rendered":"https:\/\/www.tickertape.in\/glossary\/?p=10001"},"modified":"2023-02-13T18:11:00","modified_gmt":"2023-02-13T12:41:00","slug":"a-complete-guide-to-financial-risk","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/","title":{"rendered":"A Complete Guide to Financial Risk"},"content":{"rendered":"\n<p>Risk is the exposure to potential financial loss. There are different types of risk, such as business, financial, economic, environmental, etc. For example, a business is exposed to risk due to new competitors, changes in policy, price etc.<\/p>\n\n\n\n<p>Let us read risk, its types and more in detail.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_22 counter-hierarchy counter-numeric\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">You will Learn About: <\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/#What-is-a-risk\" title=\"What is a risk?\u00a0\">What is a risk?\u00a0<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/#Return-on-equity-Highlights\" title=\"Return on equity: Highlights\">Return on equity: Highlights<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/#Types-of-risk\" title=\"Types of risk\">Types of risk<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/#A-Systematic-risk\" title=\"A. Systematic risk\">A. Systematic risk<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/#B-Unsystematic-risk\" title=\"B. Unsystematic risk\u00a0\">B. Unsystematic risk\u00a0<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/#What-is-risk-management\" title=\"What is risk management?\">What is risk management?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/#What-are-the-objectives-of-risk-management\" title=\"What are the objectives of risk management?\">What are the objectives of risk management?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/#Why-is-risk-management-important\" title=\"Why is risk management important?\">Why is risk management important?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/#Risk-and-diversification\" title=\"Risk and diversification\">Risk and diversification<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/glossary\/a-complete-guide-to-financial-risk\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-a-risk\"><\/span><strong>What is a risk?\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/web-static.wrike.com\/blog\/content\/uploads\/2021\/05\/iStock-1179385252.jpg?av=9a0d3210cd64b5845d07a73f37d2bbab\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/www.wrike.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Wrike<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>Risk refers to the exposure of an <a href=\"https:\/\/www.tickertape.in\/glossary\/investment-meaning-types-how-to-invest-and-savings-vs-investments\/\">investment<\/a> to potential financial loss arising from different circumstances. There are different types of risks. For example, in financial terms, there may be interest rate risk, default risk, liquidity risk, sector-specific risk, etc.<\/p>\n\n\n\n<p>Risk is often made up of two components- the negative impact and the probability of uncertainty. Also, risk can be measured by many metrics, the most popular (in terms of finance) being alpha, beta, standard deviation, R-squared, and Sharpe ratio. For instance, if the standard deviation of a portfolio is 20%, then the investor knows that the returns can differ by 20%.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Risks may be positive or negative. Positive risk refers to an opportunity for a business to increase its worth. However, negative risk refers to any threat that would decrease the worth of a business.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-37fca231\"><h2 class=\"uagb-heading-text\"><span class=\"ez-toc-section\" id=\"Return-on-equity-Highlights\"><\/span>Return on equity: Highlights<span class=\"ez-toc-section-end\"><\/span><\/h2><\/div>\n\n\n\n<ul>\n<li>Risk is the divergence from anticipation<\/li>\n\n\n\n<li>There are different types of risk that vary in degree and affect people in different ways&nbsp;<\/li>\n\n\n\n<li>Risk can be measured using standard deviation, beta, and Sharpe ratio&nbsp;<\/li>\n\n\n\n<li>&nbsp;The process of identifying, assessing and controlling potential risks to an organisation is known as risk management<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Types-of-risk\"><\/span><strong>Types of risk<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"http:\/\/lh5.googleusercontent.com\/-64dBMtOISq8\/Tx9KC5eaD6I\/AAAAAAAAFpg\/ytuR-nFhUAY\/s800\/Types-of-Risk.png\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/kalyan-city.blogspot.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Kalyan City Life<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>There are broadly two types of risk- systematic risk and unsystematic risk.&nbsp;<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"A-Systematic-risk\"><\/span>A. <strong>Systematic risk<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is a macro risk that affects the entire economy. This type of risk cannot be diversified and cannot be controlled by a specific company. For example, inflation, natural disasters, pandemic, terrorism, etc. There are three major types of risk under systematic risk-&nbsp;<\/p>\n\n\n\n<ol>\n<li><strong>Interest rate risk<\/strong>&#8211; This refers to any change in the interest rates of the bank. The interest rates directly impact fixed-income securities like bonds. This is because bond prices are inversely related to interest rates. Therefore, any change in the interest rates will impact the cost of debt for companies.<\/li>\n\n\n\n<li><strong>Market <\/strong><strong>risk<\/strong>&#8211; Investors usually make judgments based on sentiments in the market, assumptions, technical analysis, etc. Therefore, during a financial crisis, investors are usually not interested in investing due to the risk of uncertainty.<\/li>\n\n\n\n<li><strong>Inflationary <\/strong><strong>risk<\/strong>&#8211; Inflation reduces purchasing power and makes things expensive in general. Inflation makes it expensive for the company to produce goods. Thus, inflationary risk can burden a company with additional costs and decrease its value.&nbsp;<\/li>\n<\/ol>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"B-Unsystematic-risk\"><\/span><strong>B. Unsystematic risk\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is a type of risk which affects a specific company or a particular <a href=\"https:\/\/www.tickertape.in\/glossary\/stock\/\">stock<\/a>. It is micro in nature and can be diversified\u2014for example, business risk, litigation risk, liquidity risk, etc. There are three major types of unsystematic risk-<\/p>\n\n\n\n<ol>\n<li><strong>Business\/liquidity <\/strong><strong>risk<\/strong>&#8211; This type of risk arises from a business&#8217;s inability to generate sales and profit. This may occur due to high competition in a particular sector, management issues, etc.<\/li>\n\n\n\n<li><strong>Financial\/credit <\/strong><strong>risk<\/strong>&#8211; This is a type of risk that is associated with credit default. For instance, <a href=\"https:\/\/www.tickertape.in\/glossary\/loan-meaning-interest-rates-types-and-repayment\/\">loan<\/a> defaults, failure in repayment of <a href=\"https:\/\/www.tickertape.in\/glossary\/accounts-payable\/\">accounts payable<\/a> and more.<\/li>\n\n\n\n<li><strong>Operational <\/strong><strong>risk<\/strong>&#8211; This risk arises from unforeseen incidents in the day-to-day operations of an organisation. For example, significant errors in the manufacturing process, high employee turnover, security breaches, etc., fall under operational risks.<\/li>\n<\/ol>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-is-risk-management\"><\/span><strong>What is risk management?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/1.bp.blogspot.com\/-7IJbqSzJX9E\/XRH2kF9iEOI\/AAAAAAAACFM\/Vt0L3qYrwVIvx0PLLn9tVOUkyiWLr2NdQCLcBGAs\/s640\/2.jpg\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/processnews.blogspot.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Process News<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>Risk management is the process of identifying possible threats and responding to them in a way that creates the least (or no) adverse impact on the organisation. In order to manage risk, an organisation must define its risk tolerance and risk appetite.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-are-the-objectives-of-risk-management\"><\/span><strong>What are the objectives of risk management?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are the five objectives of the risk management process-<\/p>\n\n\n\n<ol>\n<li><strong>Risk<\/strong><strong> identification<\/strong>&#8211; An organisation must identify potential threats, including financial threats, sector-specific threats, economic threats, legal threats, etc.<\/li>\n\n\n\n<li><strong>Risk<\/strong><strong> evaluation- <\/strong>Risks are then analysed<strong> <\/strong>for their impact and likelihood.&nbsp;<\/li>\n\n\n\n<li><strong>Prioritise<\/strong>&#8211; After a thorough assessment of risks, an organisation needs to prioritise the risk based on an organisation\u2019s vision and mission.&nbsp;<\/li>\n\n\n\n<li><strong>Respond<\/strong>&#8211; After prioritising risks, an organisation needs to respond and act on strategies to minimise the same.&nbsp;<\/li>\n\n\n\n<li><strong>Monitor<\/strong>&#8211; After taking the necessary action, an organisation needs to monitor results using different KPIs and take corrective actions accordingly.<\/li>\n<\/ol>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Why-is-risk-management-important\"><\/span><strong>Why is risk management important?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.itprotoday.com\/sites\/itprotoday.com\/files\/styles\/article_featured_retina\/public\/GettyImages-1343006928-1401x788-49696df.jpeg?itok=5BgyVhCG\" alt=\"\" width=\"750\" height=\"389\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/www.itprotoday.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">ITPro Today<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>Risk management helps an organisation to prepare for unforeseen circumstances and aids in mitigating risks. When risks are efficiently managed, they reduce the cost for a company and increase efficiency.<\/p>\n\n\n\n<p>Risk management also guides decision-making. Furthermore, the company is cushioned against any potential shocks and surprises. This helps the business remain more focused on achieving its goals.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Risk-and-diversification\"><\/span><strong>Risk and diversification<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/dutchuncles.in\/wp-content\/uploads\/2021\/09\/Eggs-represent-the-money-invested-baskets-are-different-areas-to-invest.jpg\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/dutchuncles.in\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Dutch Uncles<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>Diversification is arguably the most popular risk management strategy that is adopted by investors.&nbsp;<\/p>\n\n\n\n<p>Diversification refers to creating a portfolio of different assets, like cash, ETFs, bonds, equity, etc., that have different levels of correlation with each other\u2019s returns. Diversification helps safeguard against a portfolio\u2019s <a href=\"https:\/\/www.tickertape.in\/glossary\/volatility-meaning-calculation-importance-and-types\/\">volatility<\/a>. Even though diversification does not guarantee gains, it helps in risk minimisation in the long run.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Risk is the likely happening of a negative event. Risk can be measured through various metrics and tools. Different types of risks may impact an organisation. Therefore, today\u2019s dynamic business environment makes it imperative for an organisation to manage risks efficiently. Risk management may help foresee adverse events and prepare for them.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-c3939b12 uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-c25e62d9\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is the difference between risk appetite and risk tolerance?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Risk appetite is an organisation&#8217;s ability to take risks in order to accomplish its objectives. Risk tolerance, on the other hand, is the willingness to take risks. For example &#8211; A person in his 20s probably doesn&#8217;t have a lot of ability to take risks due to <a href=\"https:\/\/www.tickertape.in\/glossary\/what-is-capital-definition-of-capital-types-and-its-importance\/\">capital<\/a> constraints and some responsibilities that they may have. But they may be willing to take risks because they are young, so why not?<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-5ac5dbd7\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What do you mean by hedging?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Hedging refers to an approach that helps minimise risks through investing in certain financial assets. These may include investing in derivatives, cyclical and non-cyclical stocks, etc.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-6ae34bba\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Is insurance a risk management technique?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Yes, insurance is purchased for protection against risk. Thus, insurance is a type of risk management technique.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-6c685d04\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is risk analysis?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Risk analysis is the process of identifying, evaluating, and controlling different types of risk that may cause any hindrance to the business.<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In finance, risk refers to the potential financial loss that is innate to an investment decision. Here is everything you need to know about risk. <\/p>\n","protected":false},"author":90,"featured_media":10002,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1932],"tags":[1929],"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4.png","uagb_featured_image_src":{"full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4.png",2086,1086,false],"thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-150x150.png",150,150,true],"medium":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-300x156.png",300,156,true],"medium_large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4.png",768,400,false],"large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-1024x533.png",770,401,true],"1536x1536":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-1536x800.png",1536,800,true],"2048x2048":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-2048x1066.png",2048,1066,true],"authorship-box-avatar":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-150x150.png",150,150,true],"authorship-box-related":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-70x70.png",70,70,true],"post-thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-270x180.png",270,180,true],"contentberg-main":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-770x515.png",770,515,true],"contentberg-main-full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-1170x508.png",1170,508,true],"contentberg-slider-stylish":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-900x515.png",900,515,true],"contentberg-slider-carousel":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-370x370.png",370,370,true],"contentberg-slider-grid-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-554x466.png",554,466,true],"contentberg-slider-grid-b-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-306x466.png",306,466,true],"contentberg-slider-bold-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-150x150.png",150,150,true],"contentberg-grid":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-370x245.png",370,245,true],"contentberg-list":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-260x200.png",260,200,true],"contentberg-list-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-370x305.png",370,305,true],"contentberg-thumb":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-87x67.png",87,67,true],"contentberg-thumb-alt":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/4-150x150.png",150,150,true]},"uagb_author_info":{"display_name":"Anjali Chourasiya","author_link":""},"uagb_comment_info":0,"uagb_excerpt":"In finance, risk refers to the potential financial loss that is innate to an investment decision. Here is everything you need to know about risk.","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10001"}],"collection":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/comments?post=10001"}],"version-history":[{"count":1,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10001\/revisions"}],"predecessor-version":[{"id":10003,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10001\/revisions\/10003"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media\/10002"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media?parent=10001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/categories?post=10001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/tags?post=10001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}