Risk Archive

Warren Buffet’s Top Investment Advises

All of us want to earn money and different people use different methods for earning it. Some sell products, some sell services and some sell both, which requires hard work as well as dedication towards the work. But even after all those hard work most of us didn’t get that much amount of money that can satisfy our needs. But there exist some people who …

Understanding Investment Risk

In the simplest of terms, investment can be described as the tendency of putting a resource to work to get the desired output in the future. Everything that we do is an investment. From breathing to work, we tend to invest one resource to another and get anticipated results. However, only a few investments qualify to be measured quantitatively, and this is the where the …

Understanding Credit Risk

The system of organized lending can never run out of risks. Be market, liquidity, credit, interest or operational, risk is inevitable for banks and other financial firms. Hence, a primary importance is given to risk profiling in all financial institutions. One of the omnipresent risks that have taken a toll on banks regularly is credit risk. In simplest terms, this risk can be defined as …

Payment Fraud and How to Avoid It?

World economy becomes nothing more than mockery when someone is duped of his hard earned savings in a payment fraud. Payment fraud is one of the several results of phishing, identity theft and other increasing methods of hacking. This two word problem has robbed banks of their reputation, merchants of their income and common man of his savings. Payment fraud is when a fake or …

Money Market Funds

Money market funds are those which invest in short-term debt instruments like US Treasury bills and commercial paper and is also known as money market mutual funds. These funds are a popular cash management tool. A money market fund’s objective is: To provide investors a safe place to invest, Which is easily available, cash-equivalent assets. A subtype of mutual funds, money market funds are highly stable …

What is Interest Rate Risk?

Interest rate risk is one of types of risk that are not specific to the company that affect the return on investments made in stocks and bonds. Interest rate risk is the unforeseen change in the interest rates that will badly affects the value of investment. For example, a bond’s price falls as interest rates rises. Interest rate risk more affects the value of bonds …