Global Business Environment Flashcards
In what ways should a good Risk Manager monitor the business environment?
Awareness of global economic trends
Specific trends e.g. interest rates, capital availability, FX rates
Journals and newsfeeds relating to specialisms
Conferences and workshops for personal development
How might a hotel address risks of a dynamic external environments and changing political, economic, social, technological, legal and environmental risks?
Diverse brand portfolio, wide geographic spread to build resilience
How did HMV fail to monitor the business environment?
Didn’t keep up with changes in buying habits such e.g. out of town retail parks and music downloads
Why is it important for orgs with international operations to understand the risk profiles of the countries they operate in?
To ensure customer base, income flows and asset security is protected against adverse events such as political instability (Syria) or financial turmoil (Greece).
Give two examples of publications that help Risk Managers stay aware of issues relating to their work or industry along with newspapers and newsfeeds.
Economist (financial trends), McKinsey Quarterly (global risk developments, change management, leadership & customer engagement insights and analysis)
What group publishes an annual report on global risks?
World Economic Forum
What were the World Economic Forum’s top three risks in 2016?
Failure of climate change mitigation
Large scale involuntary migration
Water crises
Provide an example of how changes in the business environment can offer opportunities as well as threats.
Threatened gas supplies due to the political situation in Ukraine allowed other suppliers to capitalise as alternative sources.
How is the significance of changes to the business environment linked to an orgs operations and objectives?
The risk profile of an org operating in one country will be shaped by local and national developments. A multi-national must consider changes in all the regions in which it operates.
