Investors talk about returns, growth, opportunities, aggressive/conservative, hedging, tail risk, risk profile..—-> market risk. Not credit risk, not liquidity risk, not counter-party risk.
Regulators talk about systemic risk, controls, reserves, transparency, protecting (those to be protected). They mean —-> liquidity risk.
Exchanges talk about integrity, stability … —> c-risk
Traders are accused of taking the profit but not the risk since it’s other people’s money. We are talking about —–> market risk, not liquidity risk. Credit analysis and approval is, i guess, not the trader’s job.
In an economy, investment banks are dwarfed by commercial banks. For their credit card, car loan, student loan, mortgage departments, risk means —–> credit risk, not liquidity risk, not market risk.
Hedge funds and mutual funds traders? market risk
Hedge funds owners during a crisis? liquidity risk