Political Risk Latin America Blog @PolRiskLatam

Globalisation and Emerging Risks

Posted in News and Articles, Political Risk by politicalrisklatam on November 23, 2010

by Peter Chisambara for Finance Leadership Development Blog, November 23rd, 2010.

Over the past decade or so, globalisation has presented both opportunities and risk to businesses. New developments in technology and the opening of global markets has allowed many businesses to grab opportunities in international markets, and still continues to do so.

As the recent Global Financial Crisis has shown, the global business environment has become so interconnected that one event in one part of the world can have a disastrous impact in another part of the world. Risk is inevitable. In order to achieve their strategic objectives, managers and leaders need to be aware of the various risks their organisations are exposed to, their probability of occurring as well as their severity.

Risk management should be aligned with business strategy. During the strategy setting process, questions should be asked about what could go wrong and how best the organisation can prepare for such events well in advance. Identifying and managing risk calls for a proactive approach at an enterprise level as opposed to a reactive approach at a departmental or functional level.

As the global economy continues to slowly recover from the global economic downturn, various risks still still stand in the way and seek to derail the progress. Having knowledge of such emerging risks is very essential for surviving in a volatile and uncertain macro-economic environment. (continue reading… )

 

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