Financial Risk Definition BASIC

Everyone is exposed to some type of risk every day.
A fundamental idea in finance is the relationship between risk and return, the greater the amount of risk an investor is willing to take, the greater the potential return. Measuring and quantifying risk often allows investors, traders, and business managers to hedge some risks away by using various strategies including diversification and derivative positions.

Academically, there are several theories, metrics, and strategies that have been identified to measure, analyze, and manage risks. Some of these include: standard deviation, beta, Value at Risk (VaR), and the Capital Asset Pricing Model (CAPM).

I prefer to do not talk about risk categories, because it is better to be pratical.
Next articles I will talk about the metrics and strategies, as well as how to use it at your tradings.