Commonly referred to as exchange-rate risk, arises from the change in the price of one currency in relation to another. Companies that have assets or business operations across national borders are exposed to currency risk that may create unpredictable profits and losses.
An insurance risk is a threat or peril that the insurance company has agreed to insure against in the policy wordings. These types of risks or perils have the potential to cause financial loss such as property damage or bodily injury if it were to occur.
Energy Risk denotes the uncertainty and potential impact to an entity's objectives of the availability(at the desired amount and type) and cost of different forms of energy.
Interest rate risk is the possibility of a loss that could result from a change in interest rates. Investors can reduce the interest risk rate by holding bonds of different durations. They can also hedge fixed-income investments with interest rate options, swaps and other derivatives.
Personal guarantee insurance can mitigate this risk and is an annual insurance policy that provides directors with cover in the event the business lender calls on their personal guarantee following insolvency.