What's it: Foreign exchange risk is the adverse exposure to fluctuations in foreign exchange rates. Under a floating regime, the exchange rate moves according to the foreign exchange market's supply and demand fundamentals. Small fluctuations
Investment Risk
Sovereign Risk: Meaning, Indicators, How It is Measured
What's it: Sovereign risk is credit risk attached to the sovereign debt where the government in a country will not pay its debt. It may be because the government doesn't have the ability or will to do so. Long story short, it is the default risk on