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Report: Regulatory hurdles top 2008 business risks

Posted: 27 Nov 2007 ?? ?Print Version ?Bookmark and Share

Keywords:regulatory risks? compliance challenges? 2008 business risks?

Regulatory and compliance risk is the greatest strategic challenge facing global businesses in 2008, according to a new report from Ernst & Young. Other top issues include global financial shocks, aging workforce and the inability to capitalize on the rise of the emerging markets.

"The continually escalating regulatory burden, as well as ever more complex compliance challenges, means this is still the biggest business risk to be addressed," said Jim Holstein, head of risk advisory services for Ernst & Young, in a statement. "As companies become more and more global, compliance becomes an even greater challenge, forcing them to manage diverse regulations in different markets."

Commenting on the study's findings, Juergen Schwab, CEO for TechniData, said in a statement: "The study confirms what we know from experience. There is currently intense debate at executive levels of international companies about the environmental impact of their activities and how compliance processes affect product safety and supplier relations. The introduction of the new European chemicals regulation clearly illustrates the importance of this issue. Practically every single industrial enterprise that is based in the EU or that imports into the EU will be affected by REACH."

The report, "Strategic Business Risk: 2008The Top Ten Risks for Global Business", identifies the top 10 global risks across 12 of the world's most important business sectors, as well as the five fastest-growing threats that could have a significant impact on business over the next three to five years.

The top 10 strategic business risks identified in the report are regulatory and compliance risk, global financial shocks, aging consumers and workforce, emerging markets, industry consolidation/transition, energy shocks, execution of strategic transactions, cost inflation radical greening and consumer demand shifts.

The survey also identified potential risks over the next three to five years. These include the war for talent, disease pandemic, the rise (and possible fall) of private equity, inability to innovate and China setback.

- Gina Roos
Electronics Supply & Manufacturing

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