From Introduction to Project Finance: Essential Capital Markets
Appendix 1: Generally accepted risk principles risk map
See page 152.
| Credit risk | Market risk | Portfolio concentration | Liquidity risk | Operational risk | Business event risk |
|---|---|---|---|---|---|
| Direct credit risk | Correlation risk | Instrument | Market liquidity risk | Transaction risk | Currency convertibility |
| Credit equivalent | Equity risk | Major transaction | Prudential | Execution error | Shift in credit rating |
| exposure | Equity price risk | Economic sector | liquidity risk | Product complexity | Reputation risk |
| Settlement risk | Equity price volatility risk | Booking error | Taxation risk | ||
| Equity basis risk | Settlement error | Legal risk | |||
| Dividend risk | Commodity delivery risk | Disaster risk | |||
| Interest rate risk | Documentation/contract risk | Natural disasters | |||
| Directional interest rate risk | Operational control risk | War | |||
| Yield curve risk | Exceeding limits | Collapse/suspension | |||
| Interest rate volatility | Rogue trading | of markets | |||
| Interest rate basis/ | Fraud | Regulatory risk | |||
| spread risk | Money laundering | Breaching capital | |||
| Prepayment risk | Security risk | requirements | |||
| Currency risk | Key personnel risk | Regulatory changes | |||
| FX rate | Processing risk | ||||
| FX volatility | Systems risk | ||||
| Profit transition risk | Programming error | ||||
| Commodity risk | Model/methodology error | ||||
| Commodity price risk | Mark-to-market (MTM) error | ||||
| Forward price risk | Management information | ||||
| Commodity price | IT systems failure | ||||
| volatility risk | Telecommunications failure | ||||
| Commodity basis/ | Contingency planning | ||||
| spread risk |
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