4.For a particular instrument, the risk drivers that influence the market prices of that instrument must be identified. In a portfolio, the correlations between instruments also influence the risk profile of the entire portfolio (i.e. Banking and Trading book).

5.The market price of an asset incorporates virtually all known information concerning that asset. In practice; however, it is very difficult to clearly separate the main sources that influence an instrument's market price and risk level.

As a simplification, the following are generally recognised as the main market risk drivers: