Risk Types and Trends in Business

RiskTypes and Trends in Business

Nameof Institute

RiskTypes and Trends in Business


Thedeclining number of talented workers and skilled employees is theleading strategic risk that my company will experience because in thepublicly trading manufacturing companies experience economicshortages due to financial upheavals which cause major financialcrisis to all companies and firms within the manufacturing sector.This shortage of talented workers is due to the high number ofretired professionals within the trading manufacturing companieswhich results in a gap of skilled employees. For instance, accordingto a USA workforce analysis, it showed that 89% of manufacturersexperience labor risks due to the high retirement numbers occurringannually. Furthermore, the increased number of jobs in themanufacturing industry, trading manufacturing firms feel the pinch toeffectively enforce their respective business strategies as well asengage in product innovation. Therefore, due to this major factor mycompany will experience shortage of talented workers and skilledemployees. Supply chain is another strategic risk that my companywill experience due to the various number of ‘middle men’ whohave flooded the manufacturing market. Supply chain ensures that thedistribution channels are impenetrable from ‘outsiders’ who wantto dis-configure the state of the economic markets. Moreover, thereis the possibility of regulatory risk which will definitely crippleand interfere with accounting standards especially when the publiclytrading company starts to experience growth.


G-Drive,isthe name of my bicycle making company. It manufactures bicycles forall consumers regardless of age and gender, in other words, it suitsthe needs of all bicycle lovers. For instance, there is a growingdemand for tri-cycles for young clients aged below 10years becausethey want to learn how to cycle at a young age. Due to this risingdemand, my company has experienced daily operational risks involvingthe accessibility of raw materials, experienced man power as well asthe required number of workers to handle the increased demand of theproduct. These are some of the daily operational risks that mycompany faces with the inclusion of other risks such as powershortage during the production process as well as investors optingout of the company due to the change of the company’s strategicplan of reaching out to the older generation. This strategic plan wasformulated based on the health survey conducted by Red Cross whichindicated that the rate of heart diseases among the adult generationhad increased due to lack of engaging in strenuous activities such ascycling among others.


Duringthe initial stages of starting my company I opted to sell part of thecompany’s shares to investors for financial support when filing forlegal help and licensing of the company. In addition, investors notonly bring financial strength but also consumer market experience.However, the investors only took 20% of the company’s share capitaland I was left with the majority 80% shares. Since their investmentswas not enough I had to commit myself to the financial risk ofapplying for a huge bank loan and placing my home’s title deed ascollateral. I used the loan to purchase the machineries and equipmentused to manufacture the bicycles.


Dueto the increased demand of tri-cycles, my company might face thepossibility of experiencing a compliant risk due to violating laborlaws. This might be attributed to the fact that the productionprocess is prolonged so that G-Driveisable to meet all their customers’ orders before deadlines. Hence,this might lead to extra work shifts and extended hours of ensuringall their customers’ products are packaged and distributed to thecorrect home addresses. Additionally, the lack of a well-structuredemployee contract that stipulates that all extra hours should be paidaside from the basic monthly salary might be another legalpredicament for my company.


Fragnière,E., &amp Sullivan, G. (2007). Riskmanagement: Safeguarding company assets.Boston, Massachusetts: Thomson/Netg.