Uk Risk Assessment

UK risk assessment

1- Credit risk - 2 pts

This Credit Default Swap premia graph shown above Greece, Ireland and Portugal is way more than the other countries. According to the graph it is obvious to conclude that by 2010 Greece was already having big problems with its debt which climaxed in 2013.

As for United Kingdom which is comparable lower on the graph meaning UK is less riskier than other countries in the euro-area.

2-Market risk - 2 pts

According to the data of 2009 till now, Mongolia’s inflation rate is generally 2 to 3 times more than UK’s.

3-Liquidity risk - 5 pts

The rate of GBP to USD is fluctuating intensively comparing to MNT to USD. We can see from the graph that GBP and USD has more correlation than MNT to USD. Meaning that MNT does not have much effect on currency market share.

4-Interest rate - 2pts

If we look at the interest rate of UK comparing to Mongolia, UK’s interest rate is comparably lower but more stable.

5-Operational risk - 5

Just like many other countries, there are a lot of operational risk but after the year 2008 the Operational asset.

6-Crossborder risk - 4

Date | Company | Deposits and/or branches taken by | Type of company bankrupt or closed |

October 9, 2008 | Icesave (subsidiary of Landsbanki (Iceland)) | Her Majesty's TreasuryG | Online savings bank |

October 8, 2008 | Kaupthing Singer & Friedlander (subsidiary ofKaupthing Bank (Iceland)) | placed in administration | Corporate investments and private banking |

October 8, 2008 | Heritable Bank (subsidiary of Landsbanki(Iceland)) | ING DirectG | Private banking |

October 8, 2008 | Kaupthing Edge (division of Kaupthing Singer & Friedlander) | ING DirectH | Online savings bank |

December 1, 2008 | London Scottish Bank | placed in administration | Bank |

March 29, 2009 | Dunfermline Building Society | non core business (social housing) transferred to the Bank of England, core business transferred to the...