Talk:Financial risk

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Wiki Education Foundation-supported course assignment[edit]

This article was the subject of a Wiki Education Foundation-supported course assignment, between 6 September 2020 and 6 December 2020. Further details are available on the course page. Student editor(s): 八路军被服厂李厂长.

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This article was the subject of a Wiki Education Foundation-supported course assignment, between 28 August 2018 and 21 December 2018. Further details are available on the course page. Student editor(s): Mrosales0456, Brandon Harold.

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format[edit]

These ideas are mostly unrelated. This should be a wikipedia:disambiguation. I'll remove most of the current content and condense it to a number of links, perhaps to new separate stubs, if there are no objections. Potatoswatter 07:14, 5 April 2007 (UTC)[reply]

Related Ideas[edit]

Risk-free interest rate Inflation Risk inflation real interest rate Default Risk Maturity premium bond duration Liquidity premium Risk premium Risk-return spectrum

These articles might be useful to merge or link to.

I have "Foundations of Finance: The Logic and Practice of Financial Management" 6th edition by Arthur J. Keown, John D. Martin, and J. William Petty. Copyright 2008 Pearson Educational Inc. Upper Saddle River New Jersey. I know I can't quote from it but can I use any information in it? —Preceding unsigned comment added by TheLasko (talk • contribs) 03:11, 12 November 2007 (UTC)[reply]

Opening sentence[edit]

Should the work risk in the opening sentence not link to risk? It's just that we defined financial risk without defining risk. Zain Ebrahim (talk) 12:57, 21 February 2008 (UTC)[reply]

Why just drop Market risk, Operational Risk including the IT risk? Forgot?.--Enerelt (talk) 09:26, 2 April 2009 (UTC)[reply]

Investment Risk Merge[edit]

I noticed that the page on Investment Risk was merged into Financial Risk, with no talk on either page prior to this large change. Why was this done? At least in my experience Financial Risk is an umbrella term that encompasses Investment Risk, and therefore Investment Risk should have its own page (given enough content for it). Should we undo the merge?Zfeinst (talk) 14:12, 28 November 2010 (UTC)[reply]

I merged the pages because (1) there wasn't enough content for both and (2) they so substantially overlap. In retrospect, it would be better to leave a stub. There's a sentence in the lead and an example in the Diversification section which are relevant to investment risk. --Pnm (talk) 15:05, 28 November 2010 (UTC)[reply]

Edits to the lead: Defintion of term[edit]

I have edited the lead and cited reliable sources for the current definition. According to WP:LEAD the article subject must be defined in the first sentence. If you disagree with this definition of the term, that is OK, but here on Wiki we go with reliable sources. I am also happy to discuss this further. Thanks for your cooperation and collaboration in improving this article. Cheers! -- — Keithbob • Talk • 18:54, 18 October 2011 (UTC)[reply]

There are a lot of problems with this article. It appears to be a "coatrack" article without focus. The first step to getting it focused is to define the term "Financial risk" using reliable sources. Since you are a student of this field, maybe you can cite some definitions from textbooks that you have access to. Then we can discuss and proceed together. Thanks.-- — Keithbob • Talk • 19:01, 18 October 2011 (UTC)[reply]

Hey Keithbob, I appreciate your help on this. Last year I made a big effort to try to improve this page, and it still needs a lot of work. I'm looking through some of my books now to see if I can find a "broader" definition since the one on investopedia sounds exactly like 'credit risk' and not the more general term which I have learned. Thanks for the help improving this page, I know I am not able to do it alone. Zfeinst (talk) 19:06, 18 October 2011 (UTC)[reply]

I found a book (Quantitative Risk Management by McNeil, Frey, and Embrechts) which specifies the distinctions of types of risk. The first chapter appears to be provided online [1]. The section to see is 1.1.2 where it can be seen that financial risk is sort of a hard term to define since it is really just a collection of specific types of risk. I'm looking for other sources still, but to me this looks like a good starting place for a revamped version of the page. What do you think? Zfeinst (talk) 19:25, 18 October 2011 (UTC)[reply]

In Essentials of financial risk management by Horcher, financial risk is defined as a probability of loss (which is really downside risk since I have seen others that consider standard deviation as risk and that considers the upside as well) arising from financial transactions. Financial transactions include lending money that may not be repaid due to default.Zfeinst (talk) 02:14, 19 October 2011 (UTC)[reply]

Hi Z, thanks for your reply and cooperation. I think the broader definition is OK as long as it is well sourced. I think it would also be proper, though, to mention the more narrow definition as well and cite those sources. Its not uncommon for a term to have a narrow and a broad meaning when used in different contexts. So we should mention both, don't you think? I look forward to working together! -- — Keithbob • Talk • 20:53, 20 October 2011 (UTC)[reply]

If you look at the page, I attempted to do just that. I do not think it is "perfect" but I have tried to mention both the narrower definition with regards to risk of default, as well as the broader umbrella term. How do you think it looks now? Zfeinst (talk) 21:00, 20 October 2011 (UTC)[reply]

You done good :-) I have further tweeked it to make it more user friendly. I hope I didn't lose any of the intended meaning. Feel free to change if needed.-- — Keithbob • Talk • 21:17, 20 October 2011 (UTC)[reply]

Moving Forward: To Do List[edit]

Remove Clean Up Tag--(from 2007 and does not specify what needs to be cleaned up). Done
Now that the lead is well sourced and the parameters of the term are defined, we need to create a new section called "Description" (?) with an opening paragraph that gives a more detailed overview of the topic and lists all the types of financial risk.
Make all the other sections into subsections of the main section.
Find sources and improve citations
Create a lead that summarizes the entire article per WP:LEAD
Other suggestions? -- — Keithbob • Talk • 21:06, 20 October 2011 (UTC)[reply]