Innovation In Emerging Markets - 2007 Annual Survey, Part Two

To read Part One of this article please click here

Along with the potential commercial rewards offered by emerging markets come numerous risks that need to be managed effectively, from intellectual property to geopolitical risks. Yet, too many companies employ processes that fail to achieve the comprehensive view of risk that can help them identify and manage developments that could prevent them from achieving their goals.

Too often, companies take a piecemeal approach to risk management in emerging markets—failing to consider the full range of risks they face, conducting less rigorous risk assessments for existing operations than they do before entering a market, and not integrating the risk assessments by different functional areas such as internal audit, compliance, and IT. The result is that many companies lack a consolidated picture of all the risks they face.