FCA, PRA, Investment Risks, UK Financial Regulation, Course Bundle | CIFA
**Investment risks in London** include:

1. **Market Risk**: Volatility in equity, bond, and currency markets can impact investments.
2. **Economic & Political Risk**: Factors like Brexit, changes in UK monetary policy, and global events affect market stability.
3. **Regulatory Risk**: Shifting regulations, particularly post-Brexit, and changes in tax policies can influence investment outcomes.
4. **Credit Risk**: The risk of corporate or government defaults affecting debt securities.
5. **Liquidity Risk**: Difficulty in buying/selling assets at favorable prices during market stress.
6. **Real Estate Risk**: Fluctuations in property values, especially in commercial real estate, can affect returns.
7. **Alternative Investment Risk**: Illiquid investments, like private equity or cryptocurrency, can be volatile and harder to value.
8. **ESG Risk**: Increasing focus on environmental, social, and governance factors, especially around climate change.
9. **Cybersecurity Risk**: Financial institutions in London are vulnerable to cyberattacks, which could disrupt markets.
10. **Systemic Risk**: Interconnectedness of major financial institutions means a failure in one can lead to broader instability.

Mitigating these risks involves diversification, due diligence, hedging, and staying updated on regulatory changes.