Market risks refer to the potential for financial losses due to fluctuations in market prices. These risks can arise from various factors, including changes in interest rates, currency exchange rates, and stock prices. Investors and businesses must be aware of these risks as they can significantly impact the value of their investments and overall financial performance. There are different types of market risks, such as equity risk, which involves the possibility of losing money due to declining stock prices, and interest rate risk, which affects the value of fixed-income investments when interest rates change. Understanding these risks is essential for effective financial planning and risk management.