10 Risks to doing Global Business
Going global can be a great thing but can also be very risky and scary. The truth is there is no real how to guide to doing business globally. There is help with specific markets because each market has its very own risks to contend with.
However, Ernst and Young recently did release a list of 10 risks to doing business Globally.
Top 10 Strategic Business Risks
1. Regulatory and Compliance Risk
2. Global Financial Shocks
3. Aging Consumers and Workforce
4. Emerging Markets
5. Industry Consolidation/Transition
6. Energy Shocks
7. Execution of Strategic Transactions
8. Cost Inflation
9. Radical Greening
10. Consumer Demand Shifts
The report also includes the next five risks which Ernst and Young says could move into the top 10 at any time in the future. These include:
- War for Talent
- Pandemic
- Private Equity’s Rise
- Inability to Innovate
- China Setback
You can view the full 32 page report from Ernst and Young for more details on each risk and the future five. I thought it was very thorough with highlighted prominent business case studies for each of the 10 risks. This report just confirms that these risks should be discussed when making a plan to go global, and are a must for those that are currently global.
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