Risk Management in 21st Century Businesses

 As per the Bloomberg post on 'Global Risk Briefing', following are the major risks in any business: 

1. Reserve Stockpiles. 

2. Unemployment. 

3. Inflation. 

4. Currency Volatility. 

Of these, unemployment is seen as the biggest worry over the next 10 years for business executives all over the world. In 2020, due to the pandemic, unemployment rates have skyrocketed, with fears of worse in countries which have furloughed workers. 

“The employment disruptions caused by the pandemic, rising automation and the transition to greener economies are fundamentally changing labour markets,” said Saadia Zahidi, Managing Director at the World Economic Forum (WEF). “As we emerge from the crisis, leaders have a remarkable opportunity to create new jobs, support living wages, and reimagine social safety nets to adequately meet the challenges in the labour markets of tomorrow.”

The financial, budgetary and economic effects of unemployment are profound. Many of those who leave the workforce unwillingly do not have the resources for a comfortable and long retirement. The price paid by society is increased income support, health and community support costs and reduction in human capital and productivity. The longer a person is unemployed, and the earlier they retire, the greater the adverse financial effect of unemployment. 

DFaCS noted that if mature-age workers remain in the workforce they will contribute to national economic output and to sustaining skills, thus adding to the efficiency and flexibility of the labour market. It argued that ‘reductions in the level and quality of labour generally would be expected to reduce the level and rate of growth of economic activity below the economy’s potential’. 




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