This larger consciousness of the "R" word has in part been driven by the 2008 financial crisis and its persistent refusal to "go away". Any article on risk should put its baseline by ensuring that the term "risk" has a very clear definition. If you are looking for more details about foreign currency you may visit here https://www.xchangeofamerica.com/home.
The notion of trading in foreign currencies also requires some explanation. The events of the last few years have contributed to the belief that foreign currency trading is "bad" and that it is linked to speculation and shady deals.
The cost that a currency is traded at is the market rate (or the foreign-exchange rate, forex rate or FX rate). It's always stated in terms of another currency. The FX rate spells out just how much one currency is worth in terms of the additional – e.g. one British pound is worth 1.60 US dollars.
Currency risk is the risk that comes about from the change in the price of one currency against another. This typically occurs as a consequence of fluctuations in demand for one of those monies.
Changes in demand are often driven by changes in fundamental macroeconomic conditions such as inflation, employment, taxation, changes in cross-border trade or other elements. Political instability or civil disturbances can radically alter the FX rate in seconds.
Settlement risk is the risk that counterparty to a trade doesn't provide a security or its cash value based on the agreed settlement terms following counterparty has delivered security or money value because of its side of the agreement.