Wednesday, August 20, 2014

Risk Management:What Companies Must Know

Companies must understand threats before going into a market,said Chris Torrens,director of global risk analysis at Control Risks.It's just about mitigating against that risk.There's a clear security risk in many markets.The longer term risks may be less obvious to begin with.There's corruption and social risk of the need to work with local communities or face security risk.*
The challenge arises when you have unforseen events such as the crash of MH-17 in Ukraine or an ash cloud.We tend to be drawn to those areas where conflict occurs or is likely to occur.As a company,we focus on political,operational and security risk.Many companies are just used to the bad headlines.Different risks cause different problems for different companies.*
The risk environment feels at this moment to be around a 7.5 or an 8,but many of these are recurring,ongoing crises.Ukraine is a major worry,but it's about being prepared,Mr.Torrens explained.*
One example of a current European risk is the possibility that,if natural gas is shut off from Ukraine,Germany will run out of it in February.