Global Businesses Adjustments to the Challenges of Risks and Uncertainties - Dissertation Example

There are also economic risks such as global economic downturn, currency fluctuations, and any form of financial crisis. Other risks that may impact global and domestic business are social and cultural (culture, customs, religion, language), and stability risks like conflicts and war, revolutions, coups, political processes, etc. Communication and information technology has also impacted global business. This has to be explained and analyzed in the context of risk management associated with ICT. Another objective of this study is to provide the different perspectives of organizational culture and how they affect the behavior of employees and in pursuing the goals and objectives of the organization.
The businessman should be able to determine and analyze these risks before embarking on a full-scale business operation to deal with what might be a collapse of business and the possible grave consequences that could be attained.
Risk is a part of life. From the time we set forth on earth, we meet turbulences, accidents, man-made and natural. Some are outcomes of inventions and innovations but some can be considered social outcomes or the results of our intermingling with society, such as political, economic, cultural, environmental, and so on.
Biblical history relates how our ancestors encountered risks to attain their goals. They avoided these risks by making tools and learning to invent new things, but above all, to plan their activities. Risks can be managed through careful planning and examination of the possible areas or problems that will happen in the future. Though early people did not have formal training, they learned from experience. They managed their lives because managing their lives involved managing risks.
Life has become complicated because of new inventions, technology, and complicated goals. Risk management went along the flow of modernization – it has become complicated too. Risk management in the midst of intense globalization has to be well planned and well studied. Like our early ancestors, we can depend on experience to minimize risks.
Traditionally, risk management was handled by insurance companies that took charge of the risks caused by errors, or risks caused by planning and design in buildings. But as risks multiplied, they have to be studied and taken care of carefully by a risk management team. Risk management involves analyzing risks or surprises that are expected to happen in the course of undertaking a project and the management of the possible outcomes of such a project using laws and theories that have already been tested.