Price risk and Private international law: Difference between pages

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Price risk is the risk that the value of an investment that you own will fall.
The part of the national law of a country that establishes rules for dealing with cases across different jurisdictions.
This risk illustrates how risks interact, as price risk could be caused by some or all of:


• Interest rate risk – interest rate fluctuations affect the value of instruments which pay fixed interest.
These rules apply to individuals, companies, other legal entities rather than to inter-governmental interactions.
• Credit risk – the asset is worth less because the issuer’s credit standing has weakened.
• Market liquidity risk – the market is only willing to buy the asset at a lower price (if at all).


Price risk shows how risks can be bundled up into a single term in some applications, and how important it is that the treasurer understands how risks originate.


Although a single term can be useful when considering an asset or liability class, it can also confuse.  The terminology tends to be driven by symptoms rather than causes, and a risk management strategy should really be driven by the causes.
In the US it is more commonly referred to as ''conflict of laws.''
 


== See also ==
== See also ==
* [[Credit risk]]
*[[Conflict of law]]
*[[Governing law]]
* [[Jurisdiction]]
* [[Law]]
* [[Private]]
* [[Proper law]]
* [[Public international law]]


[[Category:Compliance_and_audit]]

Latest revision as of 20:52, 7 July 2022

The part of the national law of a country that establishes rules for dealing with cases across different jurisdictions.

These rules apply to individuals, companies, other legal entities rather than to inter-governmental interactions.


In the US it is more commonly referred to as conflict of laws.


See also