Measuring and managing market, credit and Op risk [38]

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Bullet points include: Usually defined as the risk associated with fluctuations in prices of traded securities Or ‘mark-to-model’ variants for illiquid assets and liabilities Note, for non-financial firms term can also refer to risks involved in poor choice of (or execution in) markets in which to promote the firm’s products  Within banks, most naturally associated with trading book risks Banking books are also exposed to such risks, especially "available for sale" elements Market consistency, as per Solvency II, implies market risk exposures for all assets and liabilities, if practical

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