Market risk relates to the potential for the market value of an asset to fluctuate because of, for example, changed credit risk assessment, changed assessments of the future income flow from the asset, or a change in the rate of exchange between currencies. Liquidity risk is the risk that a loss might be incurred as the result of a forced sale.
Operational risk relates to the risk of economic loss caused by a process breakdown, for example, computer failure, human error, or fraud. Financial instability can be triggered by a variety of causes and shocks. These causes generally arise from combinations of structural and behavioural factors. Structural market failures are attributable to factors such as information asymmetries, externalities, and moral hazard.