Financial Education - Let's talk about the types of financial risks with emphasis on the inherent and incorporated

Given the unstable economic scenario that the world is going through, it is significant to mention that financial risks not only involve the probability that negative events with financial consequences will occur, but also the probability that financial results will increase or decrease in an unexpected manner.

The risks in general, are classified into financial risk and pure risk, and financial risk is that risk in which there is the possibility of winning or losing, instead the pure risk is the one that occurs in the company and there is the possibility of losing. or not lose but never win.

For example, pure risk in the company is in turn classified as inherent risk and built-in risk, while financial risks are classified as liquidity, market, interest, exchange and credit risks, that is, the risks are classified into pure risks and financial risks, within the pure risks are the inherent risks and the incorporated risks.

Inherent risk is that risk that by its nature cannot be separated from the situation where it exists. It is specific to the work to be carried out, it is the risk of each company according to its activity.

And the incorporated risk is that risk that is not inherent to the activity, but rather is the product of irresponsible conduct that is sometimes confused with the inherent risks of companies. In these cases, the only way to eliminate these risks is to prevent them from occurring.