Asset or absolute risk refers to the total possible losses over a horizon.
Active management risk refers to the risk where managers may make decisions which lead to deviations from the designated weights. Funding risk refers to being able to meet the obligations of an investment company—the risk that the value of assets will not be sufficient to cover the liabilities of the fund. Sponsor risk refers to the parties who ultimately bear responsibility for a fund (i.e., pension fund). It can be broken down into economic risk and cash-flow risk.
