The Encyclopedia
of World Problems
& Human Potential

Financial risk

Name(s):

High credit risk

Nature

Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent.

A science has evolved around managing market and financial risk under the general title of modern portfolio theory initiated by Harry Markowitz in 1952 with his article, "Portfolio Selection". In modern portfolio theory, the variance (or standard deviation) of a portfolio is used as the definition of risk.

Source: Wikipedia

Broader

Risk

Economic crime

Unethical financial practices

Narrower

Credit card fraud

Unproven ability to pay

Risk of capital investment

Aggravates

Infringement of privacy ^{[in 5 loops]}

Cyclic business recessions

Exploitation in rural pricing

Aggravated by

Unpaid debts

Inappropriate loans

Creative accounting

Inadequate spread of risk

Payment priority conflicts

Insufficient loan collateral

Inadequate recall procedures for unsafe products

Reduced by

Reliance on cash exchange

Strategy(ies)

Taking financial risk

Reducing financial risk

Value(s)

Type

(F) Fuzzy exceptional problems

About the Encyclopedia

The Encyclopedia of World Problems and Human Potential is a unique, experimental research work of the Union of International Associations. It is currently published as a searchable online platform with profiles of world problems, action strategies, and human values that are interlinked in novel and innovative ways. These connections are based on a range of relationships such as broader and narrower scope, aggravation, relatedness and more. By concentrating on these links and relationships, the Encyclopedia is uniquely positioned to bring focus to the complex and expansive sphere of global issues and their interconnected nature.

The initial content for the Encyclopedia was seeded from UIA’s Yearbook of International Organizations. UIA’s decades of collected data on the enormous variety of association life provided a broad initial perspective on the myriad problems of humanity. Recognizing that international associations are generally confronting world problems and developing action strategies based on particular values, the initial content was based on the descriptions, aims, titles and profiles of international associations.

About UIA

The Union of International Associations (UIA) is a research institute and documentation centre, based in Brussels. It was established in 1907, by Henri la Fontaine (Nobel Peace Prize laureate of 1913), and Paul Otlet, a founding father of what is now called information science.

Non-profit, apolitical, independent, and non-governmental in nature, the UIA has been a pioneer in the research, monitoring and provision of information on international organizations, international associations and their global challenges since 1907.

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Financial risk

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