Market risk is the potential for financial loss resulting from adverse changes in the value of financial instruments or portfolios due to fluctuations in market prices. As a core academic concept and research area within financial economics and risk management, it investigates the sources, measurement, modeling, and mitigation of price volatility across asset classes such as equities, interest rates, foreign exchange, and commodities. Its significance lies in its critical role for portfolio management, regulatory frameworks, and the stability of financial systems.