 Bismillahirrahmanirrahim. In continuation to our discussion, we were discussing introduction to financial risk management. For learning this management, we need to be familiarized with lot many words and definition which are core to this area. We'll be discussing few and then we'll continue with that once we move to next topic. So our first key definition is interest rate risk. Interest rate risk is about financing or investment which are being done by companies, institutes and even individuals. So they are prone to interest rate risk that is the change in interest rate that can impact them in multiple ways. If you have borrowed money at a variable rate and interest rate goes up you are losing. If you have borrowed at a fixed rate at a low price and rates go down that again you are losing. So it is a key area that will be discussing in depth. Then we'll have yield curve risk. We need not to worry about these definitions because we will be studying them in greater depth but for a basic start we need to have an learning of these. Second is yield curve risk. Yield curve risk is the future pattern or expectation of a movement of the interest rates. So it could be upward sloping, downward sloping or even hampered. Then we have call risk. This is a specific kind of risk that when someone has issued some bonds and they can call it back and investor will have to return them. That's a specific area type of risk. Then pre-payment risk. Pre-payment as the word says comes in when the payment or the transaction is settled before its original plan. You can see if you have borrowed for a house loan and you have got some money in the beginning you can prepaid. If you have a loan of 10 years, if you have some money after 2 years then you can pay it quickly. Now for the institution, the risk is that when they get the money they need to reinvest it. So that takes you to the reinvestment risk. Reinvestment risk and prepayment are somewhat linked. Suppose you have mega prepayment so the institution or the financing provider has to reinvest them. So if interest rates have moved differently they could be gaining or at the same time could be at loss. Then another kind of risk is credit risk. This is a very key risk specifically for financial institutions or the lenders of any kind. This is gauging the quality of your borrower. That's the main credit risk. Even if you are investing you have to see whom you are investing with and even if you are lending then you have to see who is the borrower. So credit risk gauge your capacity to pay. Then we have liquidity risk. Liquidity risk is specifically important in difficult times. Liquidity when we say we mean suppose you have a good number of bonds and you have immediate need of money. Suppose you have cash in bank that is easily convertible to any currency and you can fulfill your need but if you have a bond or if you have some stocks and you want to sell them then it is important you have the right buyer. You have a share like this which is not so much volume in the market. So if you want to sell 100,000 shares then it can be for you. It may take a few days or weeks to sell it. In contrast if it is a blue chip company share that could be sold even in five minutes. So liquidity is how easily to convert it into cash. Then we have exchange rate risk. Exchange rate risk is one of another critical important factor. It is with respect to fluctuation in the currency rates. We have already talked about this briefly. In which we discuss that in dollars, pounds or in any currency in which you are dealing, the variation in the price of that refer to exchange rate risk. You can get settlement time and you will get an impact on the reporting time. We will talk about this in further detail. Business risk. It's a more enterprise level or a bigger like thing. When you look at the overall business factor risk and how much strength is in the business, how much weakness is in the business. So this is you're looking at a wider picture in this particular risk. It can be further divided sale. Sale is the core organization's revenue. So every organization's profitability and their functioning depends on sale. So this is the risk with the movement of sale. We will prefer companies with a consistent 5% growth in sale rather than a company which has a 40% jump, then 50% down, then goes up. So we'll prefer less volatility. Operating risk. Operating risk is how much of your cost is fixed whereas how much your cost is variable because more the fixed cost, that is a higher level because even if you have a low production you have to pay for those fixed costs. Financial risk. This is common with the shareholders factor. This is about what the money is likely to be and how much you will be impacted. It refers to mainly your fixed borrowing, how much business is financed by their shareholders and the owners and how much by the external debt providers. And this list is a very long and we'll not be discussing the whole right now. We'll be adding on to these definition but these are key primary we need to understand in the beginning. Now look at this diagram. Risk perception, risk analysis and risk management. If we don't learn we can be like them. Thank you.