The paper "Internal Auditing - Al Ain Rotana Hotel" is a perfect example of a business case study. The current business environment is very competitive. Businesses are constantly threatened with greater uncertainties, both opportunities, and risks while striving to create value for the stakeholders. This is even fuelled by the fact that the global economy is just recovering from one of the worst economic crisis (Busman, 1998). In order to stay relevant and very competitive, the businesses invest in different measures. For example, some businesses opt to reduce the number of employees (for example, during the recent economic crisis, British Telecom was reported to have slashed more than 15,000 jobs getting a £ 1.3bn loss).
Some businesses cut down on the number of plants under operation, shut down offices, divisions, and branches. These closures and cut-backs are usually mainly motivated by a reduction in sales, for example, between February 2009 to May the same year, Honda Motors shut down four of its mega plants. Some businesses still resolve to shut down because they are not able to repay their debts yet the business is not making profits and more expenses are being incurred while they are under operation.
Woolworth closed down 807 of its British outlets leaving more than 27,000 people unemployed. These are serious issues that have taught the current managers to take a new approach to risk management (Root, 1998). There is a need for every business to ensure that future business risks are identified and mitigated appropriately to avoid such closures and loss of jobs. It is very beneficial for a business to take advantage of making strategic decisions on uncertain outcomes since it would help reduce or prevent huge losses.
Sometimes approaching risks holistically makes it possible to tap into opportunities that may have been missed in the first place. The sources of uncertainties with serious outcomes/ effects are explained as due to the complexity/ volatility/ heterogeneity of risk. The external events impacts (for example, competitors’ strategy, customer preferences, etc. ), and the response to external developments/ events (for example, development of strategies/ compliance to policies/ standards/ regulations, etc. ).
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