Political Risk

In the case of Bangladesh, HSBC has to be aware of the political instability like hartal which
makes it difficult in both domestic and international trade which results in banking
transactions to freeze. Beside they may face high trouble from ongoing corruption. Thus, the
growing influence of US may harm them operating both strategically and economically.

Economic Risk

Recent globalization trend can be a risk factor for HSBC to operate international basis
because of the autonomy of the state. It has been found that in Bangladesh having the people
of low disposable income the new law issues toward economic rivalry can cause HSBC slow
economic growth and stability.

Again, the slowdown in trade with the US and weakening demand from the UK would hit
Bangladeshs exports in the near future which can be a major risk for HSBC.

Competitive Risk

HSBC may need to focus on their strategic plans as their plans are not that much helpful to
defend them against the increasing upcoming international banks, currently the major
competitors operating in Bangladesh like Standard Chartered Bank which imposes strong
competitive rivalry by introducing new products, implementing innovations in service and
gaining competitive advantages so HSBC can face high risk from these competitors.

The regular customers may shift or split down to other competitors as the Government rules
are changing for the favor of consumers and by the bindings bound by the government HSBC
can face multiple constraints in operation.

Operational Risk

HSBC faces the high risk of service coverage as they do not aim to cover the country, they
only have few branches all over the country so the risk of consumer splitting is very high. By
focusing only to the big cities, they are exposed to customer loosing.

In HSBC it has been found that their front and back office employees have less coordination
and miscommunication and there exists unappreciation by the management which can cause
HSBC led to loss of efficiency and slower growth of operation expansion.