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Unit 6 Risk
Starting up
C- D
1 doing nothing
2 credit or guarantee risk
3 political risk
4 risk of catastrophe or disruption (= the risk of not being able to continue business as usual because of some unforeseen event).
Vocabulary: describing risk
A
Predict Meet Assess Manage foreseen encounter face calculate
estimate
prioritise eliminate
minimize
reduce
spread
B
1e 2f 3g 4d 5c 6b 7a
C
High: great; huge; serious; significant; substantial; terrible; tremendous Low: faint; low; negligible; remote; slight
Listening: managing risk
A
1 doing nothing
2 credit or guarantee risk
3 political risk
4 risk of catastrophe or disruption
1 a) true b) true c) false
2. 1) The company will end up with an obsolete product in an obsolete market.
2) The customer may not pay.
3) Government actions may change the situation.
4) A company may encounter fraud or criminal damage.
B
Companies should have good quality, up-to-date and reliable information available.
They should have a good management team in place to identify and deal with risks.
There should be good lines of communication between the people in the company who will pay an important role in dealing with any risk.
C
A printing press was using out-of-date technology. It had a skilled workforce, but hadn’t kept up with the market and had to close down. Lesson: Companies must keep up with evolving technology and market demands or go out of business.
Companies sold goods on credit and were never paid. Lesson: Check the credit status of the companies you trade with, or demand payment up front.
Reading: Risks from globalization
A
Pair 1 Pair 2 Pair 3 Russia ↑ ↓ ? The Middle East ? ↑ ? North Africa ↑ ? ↓ Latin America ↓ ? ↑ B
1e 2g 3d 4f 5a 6c 7b
C
Russia ↑ The Middle East ?/↓ North Africa ?/↓ Latin America ?/↓ D
1 globalisation 2 the development of communication technologies
E
terrorism, kidnapping, petty crime
direct action by pressure groups, c
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