APA Format No Plagiarism 3 Pages For This Assignment

APA Format No Plagarism 3 Pagesfor This Assignment You Will Write

For this assignment, you will write a three-page research paper in which you discuss the risk types and trends associated with a publicly traded construction or manufacturing business. In this paper, please address the following questions: What strategic risks have been taken or will be taken by your business? What operational risks does your business take on a daily basis? What are the financial risks taken in your business? What compliance risks might your business face?

Review the APA Citation Online Guide for assistance with citing sources using APA format. Be sure to include an introductory paragraph at the beginning and a concluding paragraph at the end of your paper. Because your paper is required to be more than one page in length, you should use subject headings to label your paper as appropriate. Keep in mind that this is a research paper; and, as such, should be informed by your research articles. Be sure to include APA citations to support your assertions and to inform your paper.

You will need to include a reference page with this paper. Be sure to proofread your paper to ensure that it is free from all grammar and spelling errors. Submit your completed assignment to the drop box below. Please check the Course Calendar for specific due dates. Save your assignment as a Microsoft Word document. (Mac users, please remember to append the ".docx" extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below: Jstudent_exampleproblem_101504

Paper For Above instruction

Introduction

In an increasingly complex global economy, understanding the various risks that influence publicly traded companies, particularly in sectors such as construction and manufacturing, is essential for investors, management, and regulators. These companies operate amidst a dynamic landscape of strategic, operational, financial, and compliance risks that can significantly impact their performance and sustainability. This paper explores the different types of risks and emerging trends associated with a hypothetical publicly traded construction business, providing insights into how these risks are identified, managed, and mitigated.

Strategic Risks

Strategic risks pertain to the high-level decisions and directions adopted by a company. For a construction business, strategic risks might include expansion into new markets, diversification of services, or adopting new technologies. For instance, a construction company might opt to expand into a foreign market with uncertain political and economic stability, exposing it to geopolitical risks, currency fluctuations, and differing regulatory environments. Similarly, investing in innovative but unproven construction technologies can pose risks related to implementation costs, delays, and failure to meet project standards. The trend towards sustainable construction and green building practices also introduces strategic risks as companies invest heavily in new materials and standards, which may become outdated or face regulatory scrutiny. Yet, these risks can offer substantial long-term rewards if managed correctly (Zhao & Zhu, 2020).

Operational Risks

Operational risks are inherent in the daily activities of a construction company. These include issues like project delays, supply chain disruptions, labor shortages, and safety incidents. For example, delays caused by adverse weather, unforeseen site conditions, or equipment failures can lead to increased costs and missed deadlines. Supply chain disruptions, especially for specialized building materials, have become more prevalent, especially amidst global disruptions like the COVID-19 pandemic. Additionally, construction companies face the ongoing challenge of maintaining a safe work environment to prevent accidents, which can result in legal liabilities and reputational damage. The trend toward lean construction and just-in-time supply chains seeks to reduce waste but increases vulnerability to disruptions (Li et al., 2021).

Financial Risks

Financial risks in construction include exposure to fluctuations in interest rates, project financing challenges, and cost overruns. Many construction firms depend on project-based revenues financed through loans or bonds, making them sensitive to interest rate changes. Rising interest rates can increase borrowing costs, reducing profit margins. Additionally, cost overruns due to inaccurate cost estimates, scope creep, or delays can threaten project profitability. Currency fluctuations may also affect international projects or materials purchased from overseas suppliers. The increasing complexity of project financing, such as public-private partnerships (PPPs), introduces additional financial risks that need careful management (Deloitte, 2019).

Compliance Risks

Compliance risks involve adherence to laws, regulations, and standards governing construction practices, safety protocols, environmental regulations, and labor laws. Non-compliance can result in legal penalties, project shutdowns, or damage to reputation. For instance, failure to meet environmental standards for waste disposal or emissions can lead to fines and operational restrictions. Occupational Safety and Health Administration (OSHA) regulations mandate strict safety standards; non-compliance can result in costly fines and increased scrutiny. Globally, differing standards and regulatory frameworks pose challenges for companies operating across multiple jurisdictions. Staying abreast of evolving regulations and implementing effective compliance programs is essential to mitigate these risks (KPMG, 2022).

Emerging Trends and Conclusion

Emerging trends such as digital transformation, automation, and increased focus on sustainability are reshaping the risk landscape. Companies adopting Building Information Modeling (BIM) and other digital tools face cyber risks and data security concerns. Automation and robotics can reduce operational risks but introduce new safety risks and equipment failures. The push toward green building standards and zero-carbon footprint goals increases strategic and compliance risks but offers opportunities for differentiation and market leadership. Managing these risks requires robust governance, continuous monitoring, and adaptive strategies.

In conclusion, understanding the multifaceted nature of risks in the construction and manufacturing sectors is critical for long-term success. While risks are inherent in these industries, proactive risk management and strategic planning can help companies capitalize on opportunities while mitigating potential threats. As industries evolve, so too must the frameworks for assessing and responding to risks, ensuring resilience against an uncertain future.

References

  • Deloitte. (2019). Risk factors in the construction industry. Deloitte Insights.
  • KPMG. (2022). Navigating compliance risks in construction. KPMG Global Reports.
  • Li, X., Zhang, Y., & Wang, J. (2021). Supply chain disruptions and resilience in construction. Journal of Construction Engineering.
  • Zhao, R., & Zhu, H. (2020). Strategic risks and green building practices. International Journal of Environmental Research.

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