Investment Risk Overview
Risk Exposure
Mitigation
Liquidity Risk: Cash not readily available
when needed.
Demand forecast /
Ladder timing
Market Risk
Diversification /
Avg returns via Ladder


Interest Rates Rise, Bond value falls
opportunity cost on investments
Interest Rates Fall, lower reinvestment
on maturing or called bonds
Inflation Risk: Loss of purchasing power.
Diversification /
Ladder timing
Credit Risk – Inability of issuer to pay interest
or principal
ORC / policy
limited investments
2014-1-8 Investment Risk Overview - djs