The basis for the further analysis of kinds of risk is the above division and with the systematic risk we can determine the following:
- Interest rate risk – connected with all the changes of interest rates on the market that are determined by proper authorities. The interest can affect the changes in financial instruments that an individual subject possesses. Variation in this area can be a cause of unexpected and negative results.
- Foreign exchange risk – it is connected with changes in Exchange rates which can have an influence on a given subject that deals with a foreign currency, and those changes can affect the economic performance. It may refer to not only companies that profit from foreign trade, but also to those which invest in currency exchange. Moreover it is also connected with loans in foreign currency
- Market risk – risk which is mainly associated with the stock market, because it is directly dependent on the general situation in the market. The stocks are largely determined by investors in the market and they reflect the economic situation in general.
- Inflation risk – directly connected with changes in inflation which affect purchase power of money
- Political risk – connected with decisions of a national government and local authorities. The risk accompanies every kind of activity, as all the decisions of government (on every level) taxes, regulation, etc. directly affects the general performance of a company.
- Event risk – it is a risk with reference to a given subject (or financial instrument) and is connected with events that have direct influence on a situation of a subject, but has no effect on the rest of economy.