Themes: Possible Recession in the final quarter of UK’s financial yearCommentary: 416 wordsBrief Summary of Article: The UK economy posted an economic growth during the third quarter. This means that the country is recovering from the long recession. However, the author argues that this could be premature recovery (Dunkley 2012). The 1 per cent economic growth is the highest level of growth since the third quarter of 2007. However, there are various impending challenges that could change this growth track. Therefore, a triple fall back in to recession is possible during the final quarter; it is too soon to rejoice.
Economic reports on the official GDP data are different from the reports relayed by the companies trading in the UK. Richard Buxton, head of UK equities expects a gradual economic growth in the next two years. However, weak global trade and other factors will affect this projection. Companies that rely on self-help improvement instead of economic activity will perform well (Dunkley 2012). Personal Commentary: Risk management is the process of identifying, assessing and prioritizing of risk and the economic coordination and application of resources. This is in order to reduce, monitor and control the possibility and/or impact of unfortunate/unexpected events (Sermon 2012).
The aim of this paper is to analyze the risk management process of the non-profit organization in its facilities construction project. The global economy is at a risk of going back to recession. There has been great recession in the UK labour market. This has caused high level of unemployment. However, this trend can change. In order to manage and reduce the risk of impending recession, the economy can undertake several risk management measures.
For example, UK’s organisations should undertake cost-cutting measures. This first step should be bench marked by the “best practices” that are used to reduce expenditures. Additionally, organisations can undertake headcount methods of cost reduction. Companies need to leverage the expertise offered by their operating environments. They should identify investment opportunities that can create efficiency and lower costs for long. It is possible that jobs will be lost during this period of recession. However, companies can develop smarter ways of overcoming the situation (Bell 2012). The second step that organisations can undertake to control and manage recession is to describe to the operational managers the pressure that the company is facing.
They should be advised about the targets that the company’s financial position has dictated upon cost reduction. The aim would be to ask the managers to assist in achieving the organisational goals and to suggest more ideas that can help in improved efficiency and market position. This would make the managers part of the solution. Additionally, the company should identify the operational managers that are concerned with the business strategy and to replace that are opposed to risk management (Bell 2012).
ReferencesBell, D 2012,. ’UK Unemployment in the Great Recession’, Journal of National Institute of Economic and Social research, vol. 222, no. 1. pp. F2.Dunkley, E. (2012) Investors aren’t out of the woods just yet. The independent, November 04th [online] Available at http: //www. independent. co. uk/money/spend-save/investors-arent-out-of-the-woods-just-yet-8280183.html [accessed 14th November 2012]