Integrated risk management (financial risk management) Essay

Integrated risk management (financial risk management) - Essay Example World has evolved rapidly over the last few decades. The changes on our economic horizon are just a part of a global economic shift toward better more efficient and transparent systems. The term ‘better’ is a very generic term. This has been used basically to make a statement about diversity. The term ‘better’ changes its meaning every few years for everyone. For example a few years ago it was better to own an apartment in a high rise apartment building than an ordinary house. Today however the trend has changed once again. People prefer buying private houses rather than apartments; even the most expensive ones. This is because of a socio cultural shift in human evolution. This is just a very small example of the change that is present all around us. Another example if of the concept used mostly in International Business Management (IBM) called ‘International Product Life Cycle’. This concept basically assumes that a product exists in every phas e of its life cycle if we look at the world as a whole. A very relevant example would be of a Plasma LCD. These LCDs are in the growth stage of their life cycle in developed countries. In other developed countries however they might still be in the introductory stage. This is just an example of the complexity and diversity that is present in our business environment today. This complexity and diversity makes decision making very difficult. The risk factor therefore becomes even more prominent and damaging. When every decision might be right and wrong at the same time, how can you minimize risk? Moreover a global business environment is order of the day. This means that there are very few large and successful corporations which are not multinationals. Going beyond borders has therefore become a recipe for success. Recently a new phenomenon has emerged called outsourcing. This basically includes using human