ording to Koch and MacDonald $(2009),$ banks$$ risk can be identified as six types: credit risk, liquidity risk, market risk, operational risk, reputation risk and legal risk. Each of these risks might generate harmful influence the financial institution$$s probability, market value, liabilities and shareholder$$s equity.

Adapted: Al$-$Gamal, E and Siddiq, A $(2019),$ Significance of Credit Risk Management in Banking Industry in Yemen.

$2\mathrm{.}1$ In this context, explain the fundamental differences between market risk and liquidity risk using examples.