Investment Risks

A) Market Risk
 Price Volatility due to any news updates in the market.
B) Liquidity Risk
 Can be questioned with the current ratio being lower than the market
average. Although having relatively low debt, it may not seem as a major
concern but the risk however cannot be neglected.
C) Concentration Risk
 Relatively Low. (Retained Earnings high + Investment mix of mutual funds,
debt and bonds).
D) Credit Risk
 The bonds of Britannia was rated AAA and was relatively stable thus low
credit risk.
E) Reinvestment Risk
 Opportunity cost of other investments.
F) Inflation Risk
 Loss of assets if value of investments doesn’t keep up with inflation.