| XIV. Research Reports |
- Credit Ratings
To keep credit risk within bounds and protect clients from credit failures, reports of reputable rating agencies should be made available to counterparties.
- Investment Risks and Market Strategies
Similar to other financial transactions, financial activities may provide significant benefits and involve a variety of significant risks. Before entering into any activity, banks/clients should carefully consider whether the transaction is appropriate for them in light of their objectives, experience, financial and operational resources, and other relevant circumstances. Counterparties should ensure that they fully understand the nature and extent of their exposure to risk of loss, which may significantly exceed the amount of any initial payment by or to them.
In general, all financial instrument particularly derivative products involve risks, which include, among others:
- The risk of adverse or unanticipated market movement
- Financial or political developments
- Risk of counterparty or issuer default and other credit and enforcement risk
- Risk of illiquidity and related risks
- Operational risks
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