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  • The Financial Encyclopedia
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  • February 15, 2022
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Financial Risk

The risk of financial loss that arises from a possible future change in a financial/ economic variable or more, such as interest rate, price of a financial instrument, credit rating, price/ rate index, commodity price, foreign exchange rate, credit index, etc.

Financial risk may still arise from a possible future change in a non-financial variable, whatsoever, if that variable is not specific to a party to the contract.


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