Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- PRICE RISK
The risk that the market value of an asset or liability will change adversely. One of nine risks defined by the OCC. The OCC defines price risk as the risk to earnings or capital arising from adverse changes in the value of portfolios of financial instruments. Since such adverse changes generally result from changes in prevailing interest rates, price risk is essentially the same as interest rate risk. The Federal Reserve includes this risk in its definition of market risk. See interest rate risk and market risk.Back