Nematrian
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Market Risk [3]

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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, but they may not be recognised by accounting treatment. Market consistency, as per Solvency II, includes market risk exposures for all assets and liabilities, if practical

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