Innovation In Emerging Markets - 2007 Annual Survey, Part Two
Mondaq Business Briefing › United Kingdom Law Articles in English (2007)
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Innovation In Emerging Markets - 2007 Annual Survey, Part Two
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Taking a Comprehensive View: Risk ManagementAlong with the potential commercial rewards offered by emerging markets come numerous risks that need to be managed effectively, from intellectual property to geopolitical risks. Yet, too many companies employ processes that fail to achieve the comprehensive view of risk that can help them identify and manage developments that could prevent them from achieving their goals.Too often, companies take a piecemeal approach to risk management in emerging markets—failing to consider the full range of risks they face, conducting less rigorous risk assessments for existing operations than they do before entering a market, and not integrating the risk assessments by different functional areas such as internal audit, compliance, and IT. The result is that many companies lack a consolidated picture of all the risks they face.In each emerging market, companies need to consider all relevant, high-impact events that could adversely affect their ability to achieve their business objectives. An effective risk management process should identify both the risks of loss (such as the theft of intellectual property), but also risks that could prevent the company from generating the business value it anticipates (for example, by failing to integrate successfully an acquired company or by having unexpected competitors enter the market).Deloitte member firms have termed companies ...See the full content of this document
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