Business Risk Management

The deadly Coronavirus has spread over more than one hundred countries across the globe including the US, Europe & Asia; thus hitting the import export market badly. The Covid-19 shows an exponential growth and is a threat to the people around the world. The symptoms of Coronavirus are similar to cough & cold facing problems in respiration, fever, cough and kidney failure. Despite high alertness & effective precautionary measures it has crossed 60 cases across the country from J&K to Kerala as on 11th March 2020. It has been observed that people are facing many unknown diseases on eating flesh of some animals and it will be more deadly protein when consuming in uncontrolled fashion. It is a historical fact that business continuity is directly related to the health condition of any society; this is also a part of Business Risk Management rule book. In an analysis, in most of the areas in Asia people are eating all those animals having four legs without considering the nature of flesh. It may be due to unpredictable weather across the Asian countries that people are eating meals having high protein content. While as in case of hot African countries people mostly eat flying birds including bats having high sonic hearing features. The people in Africa are facing a non-communicable virus known as Ebola.

At this critical juncture we have to credit China for construction of huge hospitals within a record time and getting it functional to handle the Coronavirus affected persons. First immediate step taken by the authorities of China was banning the hunting of wild animals in order to stop the eating of these animals. The step is taken to save further damage caused by the deadly virus beside it came under the purview of Business Risk Management module that should have been taken well before the development of Coronavirus disease.

Including Foreign Exchange & Market Risk the Business Risk Management covering Industry risk, political risk, country risk and people risk under Operational Risk head. After the outbreak countries across the globe stopped the interstate business particularly to import the items from China. The data showed a significant decline in China’s export business graph which ultimately affected badly the China’s economy. This ignorance of Business Risk Management do not only disturb the China’s economy but also in India many manufacturing units become defunct due to absence of material imported from China. Ignoring the Country & People risk these factories were making products mainly by importing the parts of products from China and then selling a finished product in Indian market. More companies were serving as mediator by importing products and directly selling it to the dealers herein India. The said process not only impacted the economy but also discouraging the entrepreneurship development. Number of flights getting stuck or facing cancellation as a precautionary measure to spreading the virus can be seen as a major setback to import business. Many countries stopped the export of protective medical equipment & medicine to other countries and India banned the export of Paracetamol. It also impacted the petroleum products, foreign textile & luxury cars hence the importance of local market & entrepreneurship. As long as we encourage local goods & products the economy will grow faster and we will qualify the Business Risk Management complainant. It is for the first time in the history that whole world is struggling hard to find an effective medicine and vaccination to control this unpredictable disease & virus. Even though the situation is under control but looking grim as it confined the people to their homes. As a precautionary measure the decision took by the administration to close down all schools, colleges, sports events and other large gatherings was a major relief to public.

Show comments