Risk tech Info

Question 1

Risks

Taxation
Risk legislation will change. Affect s&g isa & pensions

Interest
Variable rates fall, fixed interest unattractive. Affect deposit account if paying variable rate. Shop around.

Inflation

Reduce real spending power of Cash deposit based assets. High amount of cash -consider moving.

Default

Risk provider will default and S & G lose investments. FSFC gives £170k protection and they have premium bonds government backed.

Answer 1

Liquidity -risk of not being able to see asset or financial commodity in time with adversely affecting the price. G Uk commercial fund and S property when selling on retirement.

Systematic -market risk stock market could fall. fairly cushioned from falling market but uk co shares are a risk.

Political -
Risk of exposure overseas markets instability political and regulatory. corruption legislation change affecting assets. Global and offshore bonds could be affected.

Currency -non sterling could fall due to exchange rate movements. Global and offshore bonds at risk

Credit risk Simon defaults on his business payments. Income protection could help him fund payments.