Market Risk Assessment

Market risk assessment is the process of identifying and analyzing potential losses that could occur due to fluctuations in market conditions, such as changes in stock prices, interest rates, or economic trends. Essentially, it helps businesses and investors understand the uncertainty of their investments and the potential impact of external factors. By evaluating these risks, organizations can make informed decisions, develop strategies to mitigate losses, and optimize their financial performance. It’s a vital practice for maintaining stability and achieving long-term goals, especially in unpredictable markets.