as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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according to the set categories, what are the key risk indicators (kri) categories for market risk
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key risk indicators (kris) for market risk are metrics used to gauge an organization's exposure to market variables that could impact its financial condition. here are examples of kris within the specified categories:

exposure indicators:

1. value-at-risk (var) metrics indicating the potential loss in value of a portfolio.
2. sensitivity of the portfolio to key market rates, such as interest rates or foreign exchange rates.
3. concentration of positions in volatile markets or instruments.

stress indicators:
1. stress testing results showing the impact of extreme but plausible market moves.
2. breaches of pre-set risk limits on trading activities.
3. liquidity ratios indicating the ease of liquidating positions without significant loss.

failure indicators:

1. incidences of limit breaches indicating a potential lapse in risk controls.
2. tracking errors in the performance of portfolios against their benchmarks.
3. frequency and magnitude of losses due to market movements beyond expected ranges.

causal indicators:

1. macroeconomic indicators that can precipitate market shifts, like inflation rates or commodity price changes.
2. regulatory changes that could affect market dynamics.
3. geopolitical events that could lead to market instability.

by monitoring these kris, organizations can anticipate and respond to market conditions that may adversely affect their financial performance.
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