Business Risks Articles

Top 12 Global Business Risk Examples

The British Telecom Company released the results of its research of business risks that should be carefully considered in 2019.

Top Twelve Examples of Global Business Risks

Increasing protectionism and restraining the pace of globalization

Large companies entering the foreign markets will mainly experience these risks. For small businesses, on the contrary, they may provide certain opportunities to develop.

Rising oil prices

First and foremost, it concerns enterprises engaged in oil production and sales. Logistics companies and carriers spending significant funds on fuel will feel the rise too.

Sharp decline in asset prices

These risks relate to the enterprises whose property value is formed mainly due to the intangible assets. E-commerce companies as well as firms, where goodwill accounts for the major share of their assets, may also face difficulties.

Emergence of a subversive business model

This is the organizational type of business risk that creates disruption in the activities of the enterprise and its organizational structure. Business models can completely undermine existing business activity due to the unfair rules.

International terrorism

This risk will be particularly important for tour operators selling tours to the countries with a high risk of a terrorist attack.

Sudden legislation changes

In 2019, a government will change in a number of countries. Therefore, it could result in changes of legislation that defines the rules of the game.

Worldwide recession

General recession of the global economy will eventually form a business model or technology that allows overcome the negative consequences. Those companies that will use such technologies will survive on the market.

Unstable situation in the Middle East

International agreements between the United States and China remain unclear for 2019-2020. The struggle for the markets can turn into the Cold War. It will definitely have a negative impact on the companies that depend on the activities in these countries.

Increased competition on growing markets

This is a natural process for the developing countries experiencing GDP growth. In such conditions, only stable enterprises that can adapt to the difficulties remain on the market.

Lack of skilled personnel

This problem was very sharp over the last decade and will be relevant for years to come. Small entrepreneurs with the necessary skills and experience have good chances to win a competitive struggle.

Climate change

Economically developed countries already experience the influence of climate changes. They try to regulate their legislation according to the global problems of mankind. This will obviously give a new impetus to the development of energy saving technologies, insurance activity, disaster risk management, etc.

Increased industrial pollution

This risk may result in determining certain production quotas for the large enterprises. Instead, waste recycling companies will be able to start a serious business.

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