which policy is dangerous for business world ?
Answers
Answer:
1. ECONOMIC SLOWDOWN/SLOW RECOVERY
The Risk:
Many economists believe a U.S. recession is in the cards by the end of 2021. Such a slowdown could hit businesses all over the world as declining trade, reduced earnings, cuts in capital spending and slowed real estate activity start to bite. An economic slowdown could also fan the flames of trade wars and geopolitical risks – or vice versa.
Consideration:
Conducting rigorous stress tests and considering hypothetical scenarios to assess a firm’s ability to weather an economic downturn can then help it improve efficiency and productivity and find investment alternatives.
2. DAMAGE TO REPUTATION/BRAND
The Risk:
Every business faces the risks of a reputation event, such as executive misconduct, product recalls and data breaches that jeopardize consumer privacy. Any one of these can affect the company’s brand perceptions and carries significant financial consequences. Furthermore, a nonstop news cycle and a world connected by social media combine to threaten organizations with long-term reputation and brand damage.
Consideration:
Leaders considering reputation risk part of their corporate strategy should proactively create response plans for quickly addressing the public should a reputation event occur.
3. ACCELERATED RATES OF CHANGE IN MARKET FACTORS
The Risk:
Escalating global trade tensions and Brexit uncertainty, to name just two factors, can quickly change market conditions in ways businesses might not anticipate. And the emergence of disruptive technologies, meanwhile, can suddenly threaten existing business models.
Considerations:
Business leaders should consider early-warning systems to identify potential market factor risks.
Scenario planning can help companies determine risk tolerance levels and set up appropriate risk management steps – for example, diversifying supply chains, developing appropriate risk transfer strategies and reviewing and adjusting security protocols.
Explanation: