September 8, 2009

Risk in Global Business

One important consideration when going into global business is to identify the risk involve on it. Risk is inevitable, it can be anywhere. Global Business is not exempted with this risk and you can only counteract on it if you have determined the possible risks.

Global Business is prone to Regulatory and compliance risk. Most of the victims of this risk are the banking and insurance institution. There’s an ever changing regulatory environment in the global market and global businesses tend to lost their tracks in identifying, managing and controlling existing and future regulatory risks.

Another risk involve is the Global Financial shocks. There’s an ongoing financial crisis worldwide and the financial system is on the verge of downturn. One of the most affected area is of course the Global Businesses. Most investors lost their savings because of financial shocks

Of course we cannot eliminate the risk of Cost inflation. There’s a rise of pricing level of goods, this will cause unit currencies to buy fewer goods and services.

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