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