Today’s business environment is faced with rapidly changing financial systems, innovations, and globalization. Learning to thrive in a world of risk and change is the key to business success. How might an organization’s areas of risk vary in times of rapid change versus times of relative stability? Take time this week to study how others in your industry address risk during times of change. Identify and explain at least three lessons you can apply to your own organization.
No doubt, business unit faces rapidly changing financial systems, innovations, and globalization. Present age is of open competition and globalisation hence a business have to face hard competition not only from native business firm but also from firms belong to other country. This situation also gives some major benefits too. But main question how a business unit can survive in such rapidly changing financial systems, innovations, and globalization.
First of all a business firm needs to study the pattern of changes occurring in whole business environment although these changes always present challenges for a business unit but we can not deny in facing these business risk hence business unit must have some strong strategy to face these risks and to find out counter solutions. If a business unit find out solution in time then that business unit will enjoy maximum advantages in compare to other. On other hand if a business unit is not aware or not well prepared for such business risk then that business unit will be in great trouble because it will loose its market and other business unit will capture its’ market share hence we can say that change its’ business policies as per requirement of the market or as per risk is key to success. Normally constant business environment is a dream only hence change is the rule of business environment hence business unit must tied with these changes otherwise results will be negative only.
How might an organization’s areas of risk vary in times of rapid change versus times of relative stability?
Definitely, organization’s areas of risk vary in times of rapid change versus times of relative stability because in case of stability there will be no change in the business environment and business unit can carry its’ business operation with existing policies & trends hence there will be less risk in compare to rapid changes.
As we see that in the condition of rapid changes we find new challenges & risks for our business unit. Hence dynamic environment always carry maximum risks. So a business unit adopt dynamic policies in such business environment.
So it is clear that rapid changes time have more risk in compare to time of relative stability.
Identify and explain at least three lessons you can apply to your own organization;
1. Our business policy should be as per changing economic and financial business environment. Finance is the back bone of a business unit if there is change in the availablity of finance of changes in the rate of interest or change in the expectations of investors then our business unit must see these factors for satisfying these market demands. If it is not done then our business unit will fall short in managing required amount of finance for various business operations.
2. Our business unit should adjust as per the changing legal business environment, if government have enforced some new laws & regulation then it is our prime duty to follow those regulations in time for getting maximum positive results. Any business unit can not survive without matching with existing laws & regulations.
3. Change in the technology is truth in present age, if there are some new technological innovation in the business market then our customers also will expect for the same because new technological changes will show their impact on the quality of the product & services, impact on the costs of the products & services too. Hence for getting maximum succeess in the business market it is necessary to adopt itself with these new changes otherwise we will definitely loose something.