MANAGEMENT

Detailed explanation-1: -What Are Some Types of Market Risk? The most common types of market risk include interest rate risk, equity risk, commodity risk, and currency risk.

Detailed explanation-2: -Commodity price risk Commodities, such as crude oil, gold and corn, can experience sudden price fluctuations if there are any sort of political, regulatory or seasonal changes. This risk is known as commodity price risk. Commodity price changes can affect traders, investors, consumers and producers.

Detailed explanation-3: -Production risk derives from the uncertain natural growth processes of crops and livestock. Weather, disease, pests, and other factors affect both the quantity and quality of commodities produced.

Detailed explanation-4: -Production risks relate to the possibility that your yield or output levels will be lower than projected. Major sources of production risks arise from adverse weather conditions such as drought, freezes, or excessive rainfall at harvest or planting.