The changes that occur in interest rates

The changes that occur in interest rates

The changes that occur in interest rates and that are factored by occurrences such as the 1971 bombing create a market risk with the company’s assets. Insolvency risk is a resultant of several issues that are factored into company’s operations as they deprive the company of capital to sustain the decline of the value of their assets. Such factors could be heavy snowing that compromise the transportation ability/parcel delivery capacity of UPS or few number of transport media that would cripple most of the company’s operations. Lastly, assets transformation is the risk encountered when more budgetary allocations have to be credited to the replacement or upgrading of the system to meet the challenges. In this sense, assets could be tangible like machinery, or intangible like an intranet system or human resource force. The risk of assets transformation can be experienced when there is security breach or an incident derails the entire system, or even some bits. However, the company structure has enabled it to deal with risk factors as it has segmented its businesses into local/Domestic and the International packages. Such strategy saw to its expansion in 2004 to include heavy freight among its businesses and even acquire Overnite Company in 2006.

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