Question

Give two examples of your own of financial risks which are measured by either a) statistics derived from empirical data, b) quantification of expert-generated data, or c) expert judgment..

Answer 1

Financial risk is one of the high priority risks and there are various types of financial risk that are associated with businesses. Two examples of financial risk which can be measured by either a) statistics derived from empirical data, b) quantification of expert-generated data, or c) expert judgment are investments in stock markets which involves market risk as movement of the stock of a particular sector is dependent on the market and secondly is the credit risk which speaks about the leverage of the company or the individual in question. A high volume of debt and lack of operations to meet such obligations would only cause the credit risk to rise, thereby allowing the individual or the company to dissolve their belonging assets.