What is a market risk portfolio?

Aug 12, 2022 | Africa, Announcements, Countries, Financing, Home Page, Markets, Sectors, Snippets

Market risk is important to consider when you’re looking at your investments. When assessing the potential for loss in a particular market, investors frequently take a number of different sources and variables into consideration. There are various types of market risk, including: interest rate risk, commodity risk, currency risk, and country risk.

Market risk is important to consider when you’re looking at your investments. When assessing the potential for loss in a particular market, investors frequently take a number of different sources and variables into consideration. There are various types of market risk, including: interest rate risk, commodity risk, currency risk, and country risk. ABiQ helps you assess market risk using exemplary business intelligence. ABiQ provides validated data and trusted business intelligence covering Africa and the Middle East. 

Assessing the market risk of a country is important. The unpredictability that comes with making any kind of investment decision is what we mean when we talk about market risk. When assessing the potential for loss in the market, investors frequently take a number of different sources and variables into consideration. The political climate, the socioeconomic landscape, interest rates, tax rates, and various other factors are all examples of variables that can affect market risk.

Why is market risk important?

Every investment comes with some level of risk. It is critical to conduct a market risk analysis before making an investment. You can  reduce the likelihood of negative outcomes related to your investment by carrying out a comprehensive market risk assessment. If you’re  interested in entering a market that you are not familiar with, undertaking a market risk analysis is vital. A comprehensive market risk analysis will provide you with an indicator as to whether or not this is the best investment for you to make at this time.

Types of market risk

There are various types of market risk, including:

  • Interest rate risk: The unforeseen movement of interest rates as a result various factors, including actions performed by the central bank (monetary policy), are among the sources of interest rate risk.
  • Commodity risk: Any degree of volatility in the price of the commodities has a trickle-down effect that influences the performance of the entire market.
  • Currency risk: Currency risk or exchange rate risk refers to the possibility of a decline in the value of an investment owing to the depreciation of the value of the domestic currency.
  • Country risk: Country risk refers to variables that include political stability, level of fiscal deficit, regulatory environment, etc.


At ABiQ, we provide validated data and trusted business intelligence covering Africa and the Middle East. We use our unique forecasting and project tracking tool to track projects worth over $6.0 Trillion in UAE, Saudi Arabia, and 54 countries across Africa so that you can stay ahead of your competitors and grow your business. Contact us today to book a free demo now or register to get free access to a light version of our platform.

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