PRACTICE

Submitted To: ASSIGNMENT

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Business Communication -2
Roll no. :
Class/Section : BBA 4-A
Write the main idea of the article.
The main idea of this article is that it explains the importance of risk management for modern
businesses as they tend to globalize and spread over the world. As the companies globalize, their risks
increase simultaneously. These risks might be in the form of natural hazards, terrorism or regulatory,
legal, and labor risks. Unfortunately, most of the companies do not have proper risk management
strategies due to which they are likely to go out of business in first few days of a natural hazard or
other type of risk.

What types of risks are mentioned in the first 3 paragraphs?

1. The companies now a days are focusing on globalization, outsourcing,
consolidation, just-in-time delivery and cross-border supply, further increasing
their potential exposure to risk.
2. One-third of the world’s leading companies are not sufficiently prepared to protect
their main revenue sources and have room for improvement.
3. Fears of war and terrorism being added to the usual list of business worries.

Why companies are paying more attention to risk management?

The companies are paying more attention to risk management to best protect their cashflows,
competitive position and profit and also to protect their revenue sources from natural hazards.

What three risks mentioned in the article are least able to manage and why?
The three risks mentioned in the article that are least able to manage by businesses are:

• Increased competition

• Adverse changes in customer demand

• Reduced productivity because of staff absenteeism and turnover