A category of financial risk that represents influences or shocks to the financial system, and its institutions, come from external sources/ events (i.e., from outside the system). Examples include any factors that are not controllable by an institution operating within the system, such as general price movements (that depend on the actions or policies set by a government agency, etc.)

Game against nature risk (also known as exogenous risk) may also include wide-spread catastrophes (earthquakes, pandemic, etc.)

Market participants react to the shocks caused by external factors but cannot control or influence it (as opposed to internally generated risk, the so-called endogenous risk).