Top 10 Business Risks for 2009
For the second straight year, Ernst & Young has released a report ranking what the firm sees as the top 10 risks for global business in the coming year. This year's top 10, compiled in collaboration with Oxford Analytica and based on interviews with more than 100 analysts, contains a few surprises.
Not that anyone will likely be stunned by the ascent of the credit crunch to the Number 1 slot, or "deepening recession" coming out of nowhere to No. 3.
But the threat posed by non-traditional market competitors -- companies entering a sector from adjacent markets or distant geographies -- has leapt onto the risk radar for 2009. It's ranked fifth, up from sixteenth in the 2008 list. Companies based in the emerging economies will muscle in on new market segments and niche areas, E&Y notes (echoing reports from The Boston Consulting Group this year; see this article).
Reputational risk soared from No. 22 in 2008 to No. 10 for 2009, propelled no doubt by assorted Wall Street disasters. The rise of "radical greening," from No. 9 to No. 4, suggests that companies are becoming more aware of the real damage they risk if they neglect environmental and sustainability challenges.
For the second straight year, Ernst & Young has released a report ranking what the firm sees as the top 10 risks for global business in the coming year. This year's top 10, compiled in collaboration with Oxford Analytica and based on interviews with more than 100 analysts, contains a few surprises.
Not that anyone will likely be stunned by the ascent of the credit crunch to the Number 1 slot, or "deepening recession" coming out of nowhere to No. 3.
But the threat posed by non-traditional market competitors -- companies entering a sector from adjacent markets or distant geographies -- has leapt onto the risk radar for 2009. It's ranked fifth, up from sixteenth in the 2008 list. Companies based in the emerging economies will muscle in on new market segments and niche areas, E&Y notes (echoing reports from The Boston Consulting Group this year; see this article).
Reputational risk soared from No. 22 in 2008 to No. 10 for 2009, propelled no doubt by assorted Wall Street disasters. The rise of "radical greening," from No. 9 to No. 4, suggests that companies are becoming more aware of the real damage they risk if they neglect environmental and sustainability challenges.
Posts
