Unit-5--Globalisation-Generates-Risks-for-Business

1Unit5RiskGlobalisationGeneratesRisksforBusiness全球化对企业的风险INTERATIONALbusinessesbelievetheyarenotfullypreparedtohandleagrowingnumberofthreatsinanincreasinglyvolatileglobalmarketplace,accordingtoareportpublishedbyleadingbusinessriskconsultancyControlRisksGroup.Accordingtothecompany’sannualassessmentofrisksfacinginternationalbusiness,globalizationandthedevelopmentofcommunicationstechnologieshaveprecipitatedsignificantconcernsamongexecutivesconcerningrisks,includingorganizedcrime,terrorism,internalfraud,corruptionanddirectactionbypressuregroups.Globalizationhasalsoexacerbatedmanypre-existing,low-probability,high-impactrisks,suchaskidnappings.Theseconcernswererevealedthroughabusinesssurvey,conductedbytheIndustrialResearchBureau，ofUSandEuropeancompaniesaboutattitudestoriskandriskmanagementamonginternationalbusinessdevelopmentdirectors.‘Althoughexecutivesseeglobalizationasadrivingforcebehindunprecedentedopportunitiesinternationally,thereisrealapprehension2aboutaplethoraofrisksthatmaystandintheirway，’accordingtoRichardFenning，DirectorofControlRisksNewYork,whoreleasedthereportatapressconferencetodayinWashingtonDC.‘Anythingfrominternationalsanctions,terrorismandcurrencydevaluation,toextortionandkidnapping.’Accordingtothesurvey,asignificantmajority(68%)ofthoseUSexecutivespolledbelievethatglobalizationgeneratesmoreriskforinvestors.Additionally,thesurveyindicatedthatbusinessesexpecttobeincreasinglyforcedtoaddressthechallengeofreputationalrisks.Businessdevelopmentexecutivesarefirmlyplacingconsumeractivism,corruption,andhumanrightsontheiragendas.Thesurveyrevealedshare-holderactionasthemostcriticalreputationalrisk;kidnapasthemostsignificantsecurityrisk;andinternationalsanctionsastheforemostpoliticalrisk.MostrespondentsofthesurveyconsideredriskstobeincreasinginRussiaandtheformerSovietUnion,withsophisticatedfraud,corruptionandorganizedcrimeasthedrivingfactors.Interestingly,76%ofthosepolledconsideredtheriskstobestaticordecreasingintheMiddleEast;59%ofrespondentshadthesamefeelingaboutNorth-Africa;and67%heldasimilarviewaboutLatinAmerica(excludingBrazil)where–withsomeclearexceptions—politicalandeconomicissueshavereplacedsecurityastheprimesourceofriskoverthepastdecade.3‘Althoughtraditionalrisks,suchaspoliticalandextremistterrorism,aredecreasinginincidence–yetnotimpact–problemssuchasorganizedandpettycrimearelikelytopresentaspecificandharderrangeofrisksthanpreviously,’saidMartinStone,HeadofResearchforControlrisks.CASESTUDY•Whatisyourunderstandingof“businessethics”?•Couldyoupleasepointoutsomewrongdoingsinbusinessandthenoffersometypicalexamples?