International Business Issues and Practice

BCM714
1.) Introduction

Undetermined occasions which can be caused a compelling negative effect if they happen
can be identified as global risks [ CITATION Ste19 \l 1033 ]. With the perpetual development
in the world, the impact of global risks will be highly effected to the world of corporate. To
achieve the corporate business goals and visions, organisations must recognize their
potential risks without any failures and mitigation plans to overcome the identified or
occurred risks to be in the lane of achieving their targets.

The Global Risks Report is produced by the World Economic Forum when the world leaders
and effectors get together in Davos Switzerland once a year and this report carries
acknowledged risks which will be affected within the next ten years of geopolitical and geo-
economic pressures. Most prominently this report can be obtained the attention of world
class executive leaders of various companies around the world [ CITATION Wor19 \l 1033 ].
Unless these risks cannot be got through by world, we will not be able to contract with
collective challenges.

In previous years of the global risks reports, almost all the risks can be recognized as
economic and environmental risks did not fall under top five risks, but in 2007/08, with the
effect of financial crash, frauds withdraws from the banks led to identify the human threats
such as cyber-attacks and data fraud activities. And also, environmental risk has been
showed in extreme growth among global risks [ CITATION Rob20 \l 1033 ].
Geopolitical disturbance, technology development and innovation, and environmental risk
are the risks which are rising risks in upcoming years and leaders who are handing
businesses have to carefully handle them and according to Vollmer (2018), business leaders
have identified that new technology and innvotation as their biggest threats.

- Brief description of emerging risks in 2019/20 as report.

Global Risk Report 2019, has mentioned that Geopolitical and geo-economic tensions are
the most crucial global risks at present. Trade and investments among countries were
problematic during 2018 and it led to make cooperative growth on other global challenges
from caring the environment to answering to the ethical challenges (Annex 01).
Among the possible three of top five risks and four by impact out of five, environmental risk
has been a reason in 2019. Extreme weather condition is the most considered one from the
 Environmental risks while survey respondents afraid about the environmental policy failure.
Technology risk has been played a deep role among global risks continuously and data fraud
and cyber-attacks have been famous as technological vulnerabilities. Biological risks have
been threaten to human and society well-being as well as economic and national security
activities. Global Risk report has also mentioned that sea level will be risen by 0.5m by 2050
and it would be highly effected to the people live in coastal cities [ CITATION Glo19 \l 1033 ].

Structure of the report

World Economic Forum’s Global Risk Report 2019 has identified that economic
vulnerabilities, geopolitical tensions, societal and political strains, environmental fragilities,
and technological instabilities as effected risks to which national and organizational
strategies. This report contains how Bharti societal and political Airtel Limited, Sri Lanka is
facing and mitigating their potential risks under technological risk, strains and geopolitical
tensions among Global Risks with referencing PESTLE analysis framework. Further this report
discussing the strategies which Airtel is putting in place to counter the effects and how to
remain competitive while achieving their goals.

Company overview of Airtel

Bharti Airtel Lanka PVT LTd is one of five Mobile telecommunications service provider in
Sri lanka who commenced its operations in Sri lanka in 2008. Bharti Airtel Lanka is under the Bharti
Group in India and Airtel Telecommunications, who has the third largest subscriber base in the
world. Airtel introduced the low cost packages as it was penetrating the market and went viral with
the iconic airtel music which was composed by world renowned musician A.R Rahman.

Technological

G 4g coverage,ifra structure

Geopolitical
Moving to Ericson
Conflicts with Huawei
Competitors having advanced technologies

societal and political

 Indian company,

Overview of PESTLE Analysis

PESTLE is used as a strategic tool

this concept is used as a tool by companies to track the environment they’re operating in or
are planning to launch a new project/product/service etc.

PESTLE is a mnemonic which in its expanded form denotes P for Political, E for Economic,
S for Social, T for Technological, L for Legal and E for Environmental. It gives a bird’s eye
view of the whole environment from many different angles that one wants to check and keep
a track of while contemplating on a certain idea/plan.
References
Anon., 2019. Global Risk Report, Geneva: World Economic Forum.

Anon., 2019. World Economic Forum. [Online]

Available at: https://www.weforum.org/reports/the-global-risks-report-2019
[Accessed 06 September 2020].

Banker, S., 2019. Forbes. [Online]

Available at: https://www.forbes.com/sites/stevebanker/2019/02/04/which-global-risks-are-
increasing-in-2019/#5901ba7e51e3
[Accessed 06 September 2020].

Muir-Wood, R., 2020. Risk Management Solutions. [Online]

Available at: https://www.rms.com/blog/2020/01/24/how-did-the-global-risk-report-become-
existential
[Accessed 06 September 2020].

Vollmer, D. H. a. S., 2018. Financial Management. [Online]

Available at: https://www.fm-magazine.com/news/2018/dec/2019-business-risks-201820271.html
[Accessed 06 September 2020].
Annex 01

The Global Risks Landscape 2019 [ CITATION Wor19 \l 1033 ].