Market Risk Market risk is exposure to the uncertain market value of a portfolio. It is the risk that the value of this portfolio may decline over a given period of time simply because of economic changes or other events that impact the market. The five standard market risk factors are: Equity risk – the risk that stock prices will change; Interest rate risk –the risk that interest rates will change; Currency risk – the risk that foreign exchange rates will change; Commodity risk – the risk that commodity prices (eg. Gas, metals) will change; Credit risk – the risk that credit prices/spreads will change. Market risk can be measured in a number of ways but the most common is to use a Value at Risk methodology which is a well established risk management technique. Please click here to access further articles and resources related to market risk