I typed "financial risk" into the search engine (Google.com search for "types of finanical risk") as I was putting this module together, and this is the list that confronted me:
Woah! Well yes, the management of each of these risks is important in your energy project. But don’t fret, many of these can be mitigated with simple measures and others might be ignored. First, let's get a definition (or two):
Financial Risk: "The possibility of losing money on an investment or business venture" (Investovepia.com [1]).
Risk can also be defined as: "The probability that actual results will differ from expected results" (Corporate Finance Institute.com [2]).
We'll take a look first at market risk.