Risk Management



Risk Management

Introduction

Various risk elements are associated with every industry or business organization while doing the business. There are many factors that lead an organization to success or failure. Thus it is very important to identify the risk associated with that business, the risk associated with business can be financial and non financial. Business risks involve uncertainty in profits and other dangers that can cause a business failure (John & MacLean, 2009). For instance, a business owner may face various risks like production can be affected because of irregular supply of raw material labor unrest, breakdown etc. In marketing risks may arise because of changing fashions and trends, price fluctuations etc. moreover there may be assets loss because of fire, earthquakes, war, political unrest, flood and riots. Today more than ever, as a society we have become aware of the importance of being respectful to the environment. We realized as our customs have triggered a great world problems in which our planet needs our help to preserve an environment in which we can survive.

Green technology is a reality. Green Technology is the efficient use of computing resources while minimizing environmental impact, maximizing economic viability and ensuring social duties. Some of the technologies that are classified as green because they contribute to the reduction in energy consumption and carbon dioxide emissions are cloud computing, grid computing, virtualization in data centers and tele-working. Green technology is being developed in many countries including, Mexico, USA, South American countries and in Europe. Green technology is an emerging trend in Latin America since the beginning of the 70's. However, the growing global concern for sustainability has sparked particular interest of many countries around the world. The importance is to reduce energy consumption and carbon dioxide production. Thus Green Technology contributes to the reduction of global warming, caused by equipment that consume a lot of energy that creates electricity generators are forced to produce more output affecting Global Warming. This also contributes to reduced expense in our homes and businesses. Green technology arises from the need to generate savings and reduce environmental impact in their own environment (Jeetesh, 2009). Thus, companies that develop and implement green initiatives are also more reliable source of suppliers, implement improvements in logistics and have a better reputation to the general public.

Today more and more companies are focusing on the adoption of green technology. From start-ups to large corporations and national governments, organizations around the world are interested in green technology as a means of growth, a source of efficiency and competitive advantage. Smart investors have recognized that cheap oil is not going to last forever thus everyday business can be revolutionized with the help of green technologies as computers have revolutionized this business world. Organizations and companies that want to become green face various challenges and risks. These risks affect the legal wellbeing, regulatory, and financial risks of the company. Thus in this paper I am going to discuss the risks associated with automobile industry that are going ...