Volatility risk
Volatility risk From Wikipedia, the free encyclopedia Jump to navigation Jump to search Categories of Financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk Operational risk Country risk Legal risk Model risk Political risk Valuation risk Moral hazard Reputational risk Volatility risk Settlement risk Profit risk Systemic risk Non-financial risk v t e Volatility risk is the risk of a change of price of a portfolio as a result of changes in the volatility of a risk factor. It usually applies to portfolios of derivatives instruments, where the volatility of its underlying is a major influencer of prices. Contents 1 Sensitivity to volatility 2 Risk management 3 See also 4 References Sensitivity to volatility [ edit ] A measure for the sensitivity of
