One of the most significant challenges in modern economic science is the steady growth of risks associated with operations in financial and stock markets. Among the various types of financial risks, market risk occupies a central position due to its direct impact on the stability and performance of financial organizations. Market risk arises as a result of fluctuations in market variables such as interest rates, exchange rates, equity prices, and commodity prices, which can adversely affect the value of financial assets and liabilities. This paper analyzes the main causes and sources of market risk formation in the context of contemporary financial markets. Special attention is paid to the conditions under which market risk intensifies and influences the decision-making processes of different groups of financial market participants. Furthermore, the study outlines key conceptual approaches to defining market risk and reviews commonly used methods for its measurement and assessment. Understanding the nature of market risk and its implications is essential for improving risk management systems and ensuring the financial sustainability of organizations.