In Property and Casualty Insurance, risk refers to a peril (e.g., fire, wind storm or auto collision). People view investment risk in many ways which can involve a number of different factors. Good financial planning involves both understanding different types of risk and taking steps to reduce the effects of these risks. There are several types of investment risks that should be considered in any investment. These are as follows: Call Risk, Capital Risk, Credit Risk, Default Risk, Inflationary Risk, Interest Rate Risk, Legislative Risk, Liquidity Risk, Market Risk, Selection Risk, and Timing Risk.