Investment risk:
1. According to the causes of investment risks, it can be divided into natural risks, social risks, economic risks and technical risks.
(1) Natural risk. Refers to the risks brought to investors by irregular changes of natural factors, such as earthquakes, floods and typhoons.
(2) Social risks. Refers to the risks brought to investors by unpredictable individual or group behaviors, such as fraud, theft and dereliction of duty.
(3) Economic risks. Refers to the risks caused by poor management or changes in market factors in investment activities, including business risks, price risks, interest rate risks and inflation risks. Economic risk is the inevitable product and inherent phenomenon of the market, so it is the core issue of investment risk management.
(4) technical risks. Refers to the risks caused by poor technical design and management, such as system failure, unqualified engineering quality or environmental pollution.
2. According to the nature of investment risk, it can be divided into pure risk and speculative risk.
(1) pure risk. Refers to the risk of not bringing profit opportunities and gaining profits. Pure risk has only two possible consequences: loss or no loss. The loss caused by pure risk is absolute, which is generally related to the destruction of natural forces or human behavior mistakes.
(2) Speculative risk. It refers to risks that may bring opportunities and benefits, but it also implies threats and losses. There are three possible consequences of speculative risk: loss, no loss and profit. If the speculative risk causes the main body of activities to suffer losses, the whole society may not necessarily suffer losses; On the contrary, others may benefit from it.
3. According to the scope of investment risk, it is divided into systematic risk and non-systematic risk.
(1) System risk. Refers to the risks caused by war, inflation, economic recession and other factors that affect all companies. Systematic risk involves all investment objects and cannot be dispersed by diversification, so it is also called undivided risk or market risk. For example, if an enterprise wants to invest in another enterprise by buying stocks, no matter which company it buys, it must bear the market risk, because during the economic recession, the prices of various stocks will fall to varying degrees.
(2) Non-systematic risk. Refers to the risks caused by unique events in individual companies, such as strikes, failure of new product development, failure to win important contracts, failure of litigation, etc. This kind of event happens randomly, so it can be dispersed by diversifying investment, that is, the unfavorable events of one company can be offset by the favorable events of other companies. Generally speaking, "the risk of eggs in different baskets is much smaller than that in one basket", so non-systematic risk is also called dispersible risk or company-specific risk.