The market risk (MR) that arises from the broad dynamics of a market, rather than any individual sector or partition. It captures the risk of loss that results from broad market movements, such as changes in the general level of interest rates, general price level, cost structures, credit spreads, exchange rates, etc. Risk factors relating to general market risk are variables which are driven by macroeconomic, geopolitical and other market-wide fundamentals. Such factors are largely or completely independent of any instrument or single entity, etc.

A general market risk reflects all the sources of risk associated with a long or short position in the market as a whole. This risk can also be aggregated across multiple markets in which an entity has a general exposure.