Financial risk
Any of various types of risk associated with financing / From Wikipedia, the free encyclopedia
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Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default.[1][2] Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent.[3][4]
Modern portfolio theory initiated by Harry Markowitz in 1952 under his thesis titled "Portfolio Selection" is the discipline and study which pertains to managing market and financial risk.[5] In modern portfolio theory, the variance (or standard deviation) of a portfolio is used as the definition of risk.