OVERVIEWW [_ Vocabulary Describing risk [| tstening Effective risk managemant few Planning for the future [| bansuage review Adverbs of degree Skills Reaching agieenieit Case study Suprema Cars claus © which item in each of the categories below carries the most and the least isk isk? Explain why. Travel Lifestyle money hopping car drinking alcohol property online plane poor diet stocks and shares mail order train smoking savings account private sales ship jogging cash auction © Are you a risk-taker? What risks have you taken? © What risks do businesses face? Note down three types. S vocabuiary tie page 173 © (141 Listen to allan Smith, whoisan expert Note down the risks he mentions. isk management. © The verbs in the bun are used to deste righ. Clreck ely mew put them under the appropriate heading. igo and calculate eliminate encounier estimate face. foresee minimise prioritise reduce spread Predict Meet Assess ManageEffective risk management A Steve Fowler 6 Risk | © match these naives ot sentences from newspaper extracts. 4 Internet businesses... 2 We can reduce risk 3 Trying Ww a) risks involved when sending staff to work in dangerous locations. 6) in order to advice incurance 4 itis impassihle to. eaaner itisafcut to foresee the , © loved in seting up anew er | business. F ick. | @ eliminate all risk when entering a 6 Actaris cleite is eet 7 Hreimnertant ta consider \. race mereasing risks ot running out = of money, 4) by spreading our lencing to more businesses. 8 isan important pait uf business strategy. @ The following adjectives can be used with the word risk. Which describe a high level of risks whicn describe a tow level? fai geal huge minuscule negligible remote serious significant slight substantial terrible tremendous © pairs, talk about the rcks facing one ofthe following: 4 your company / institution 2 your city / town 3 your country. © a2 tistento the first part of the interview with Steve Fowler, Chief Executive of the Institute of Risk Management, London, What are the four main types of risks tive two examptes ot each type. © (2: Listen to the second part of the interview and note down the five key steps to effective risk management. © 6264 Listen to the final part of the interview. What three examples of ffactive risk managemant doce he mention? What negative example does he mention? © in pairs, discuss the following. 1 Give some examples of companies that have handled risk well or badly. 2 Choose a company and say what risk itfaces. baz6 Risk In today’s fast-uh Planning for plan for the future? the future ig world, how far aliead can compantes realistically © the following risks are of concern to senior exec! they fitinto the table below? Changes in custemer demand Loss of productivity cue to statt ansence / statt tumover increased competition . Where do you think De kee is @ weactypes of risk are mentioned in che first ree paragraphs? © Why are companies paying more attention to risk management? @ According to the article, which of the people listed below believes the following? Lod Levene Ken Davey Shivam Subramaniam Neil Irwin 4. Businesses face greater rlsks because they are trying to expand in many different ways, Businesses need to evaluate risks which can affect their profits. Senior managers need to change their thinking in order to manage risk. ‘Many businesses concentrate too much on less Important risks, Businesses should check their exposure to risk often, Businesses which have a well-thought-out approach to risk will increase their profits. oorwn @ Match the follow word partnerships as they appear in the article. 1 business a) hazards 2 recovery ~. “~~ by interruptions 3 decisive ©) sources ‘potential )oetations 5 integrated @) plan 6 revenue f) strategies 7 near-normal 8) action @ Match the word partnerships to the most appropriate verb below. For ‘example: develop integrated strategies take protect assess develop. implement resume prepare for © Discussion. 4. Which types of risk do you think will a) become mare significant in the next 50 years? b) become less significant in the next 50 years? 48]By Andrew Bolger Risk management has onde edly moved up the corparute agenda in recent vears with fears of war and terrorisin being added sto the usual list of huslness Shivan Subramaniam, the Chairman ang Chief Exceutive of FM Global, a eommercial (9 and incusirial property insures, sys: ‘Corvoraitons are operat na turmolese work where ses are seoking yrowth elt gluvallyauion, our Sourcing, consolidation, justin. time delivery and cross border supply, further ineseasing the! ati exposure to risk ‘Add regulatory, legal and iebwuar be eeneidoratione, ani yo begin to understand the eamplex nature of Iricinse rok in tho 2iet contury, ‘While acts of tervorism receive the most coverage, it's the more 25 traditional events such as tres, floods, explosions, power failures or natural disasters that have the Digest imma JPM Global bellowes the mnajity 90 of all loss can be prevented or imiaimised pri this Shoula be the first purt of any disascor recevery plan. It also argues that proventina is hetter than cure and say’ there a 18.2 1ot compantes tan do to stop sueh evenis from becoming a lsaster in the frst mace, fowever, research shows that ‘more tan one tbr uf dhe word's sq leading companies are not sufficiently preys ty snulues their main revenue sources ard Ihave: room foe iaprovensene, Ken Davey, a managing director "To beat Se ccna te Wentgt aa da Such eeaeatal racrehetorimene ron The dangers of not looking ahead uo uy 6 Risk J ‘Phe ausyey found Ua ae tle st signifieaml risks, and those that businesses felt least able to izing, ware + Increased competition + Adverse changes in custom femand + Reduced produetivity hecause of staff absentevism and urnaver. While ‘business leaders are aware that these risks ee the most threatening “to their trure survival and growth they ate scratching their heads when it comes to protecting their Dosinesses against hem, says Nell Livin, European development dreclor uf Marsh's corporate lent prsence,-auanagement processes could easily help oupaules Wdeuilty and eaaress these risks. Instead, too many companies take a low-level appruach to risk mazagement preferring to foeus on oasy-teseten risks, such as assot protection and Zoalth aid eafoly? Mr Trwin says ‘Risks dynamo, iL changes with the oavironment Unless bsmesses a jaw Fiske regularly, "hay could ntually find themselves in a state of crisin. stuzeling +n fe rather than focused on growth, Fusiness lenders have an Obligation to their employes, Shareboldors and othr siakehole ors to progerly protect themselves against risk. Businesses thet do attempt to manage those risks will “boast their bottont lines! From the Finavicivl Times HINANCTAL TIMES6 Risk Language review Adverbs of degree | # We can use adverlis (0 strengthen the meaning of adjectives: international businesses believe they are not fully prepared to handle a ge sanber of dhreas ir ant increasingly volatile sioba! marketplace + We caus also use thom to often the meaning: ‘he report was slightly critical. D pase 132 are the weakest in the box © Which adverbs are the strangest and wt below? abit entirely exceptionally extremely fairly highly increasingly mederately quite rather reasonably slightly somewhat totally very © complete these dialogues with a suitable adverb, 4 ‘What were your results like last year?” " commeentnnnnees BOOU, We increased protits oy Over 5%. 2 ‘How wos the Inunch of your new product?” eee ‘successful. We've been flooded with orders ever since.” 3 ‘Do you really think we should try to enter that new market?” as . Tisky but on balance | think we should go ahead.” 4 "What did you think of the presentation?" HE WAE seseenennanees USBIOES, Most of the audience lost interest after five minutes.” 5 ‘Are you confident about those sales prjections?” confident, although irs going to be rough. © Write short dialogues using some of the phrases below. Fairly accurate deeply disappointed incredibly well-prepared slightly damaged absolutely awful ‘totally unrealistic severely criticised superbly presented badly misiudeed thoroughly eniovedReaching agreement | _ Useful language Asking for opinions. Does anybody have any strong feelings about ..2 Giving opinions Well, unfortunately, | think we'll probably have to 6 @ (765 Following the brainstorming meeting in Unit 2 International marketing (page 9), the team meets again to finalise plans forthe launch of the website, Listen to the authentic meeting and complete the table. Ideae | Approved Yee alin promotion as Tv advertising : “Sponsorshis L 2a Advertisements in journals Using estabisned comacte Newspazers/nagecines | © Match the expressions below from the meeting tu le approprlate heading in the Useful language box. (Some can be put under more than one heading.) Use the Audio script on page 163 to check the context of each expression, 4 ..'m not sureifl agree with that, 7 ...it's very important that we use 2 Idon't think we can. the contacts... 3 «| Would say i’ really risky... 8 Could we combine the two maybe? 4 0K 9 Hust think 5 os, | would agree with that 40 ...| think we've all agrood 6 Yeah. I think that’s important. @ Workin groups of three. Read the information below. Then role play the meeting. You. ate managers in a mobile phone company, Speakeasy Ltd., bosed in San Diegu, Califurnia, Thee cusnpany wishes to send two executives to set up a branch office overseas, However. ‘the location chosen is politically very unstable and there has ben some terrorist activity in the area recentiy, Hold meeting to decide: a) whether to senc the two executives to the area ») if so, how to reduce the risks to which they will be expose ) Manager A turn to page 146. ‘Manager B turn to page 153, Manager C tum to pase #55. Agreeing ‘Adding a condition Emphasising think I'd agree with you | agree providing we can... | keep going on about thete Wieean do that if. thi But ae Disagreeing Making suggestions summarising Weil hold on What about if we ..? So, we've anreed that...CASE STUDY _s2] “Our cars ate for people who want something different. Th has been the slogan for wer 50 years Cars, manufacturer of a classic English sports car, The car is mostly handmade tn We company’s EAcwory in northem England. Suprema Cars produces, approximately 500 cars. year, About five years ago, the company began to lose sales and market share, and in the kast two ye it has mace a loss. Recently, there have been problems with the labour force. The factory workers have demanded higher wages and beter working conditions. They are also unhappy peissing thar they increase production, but the workers Uhink this will have a bad effect on the quality of the cars. In the last few months, there has been an increase in the number of ‘Suprema ears dat have broken down. Lhe company stil] has many loyal eustoniers, People buy Suprema sports cars because they are handmade and have an image of quality and craftsmanship. Customers love the ex's dlassic design und excellent performance. They are willing to pay the existing prices for the eass, but itis nor certain that the company could increase prices significantly without losing more customers.Atime for taking risks Jack Dexter, Managing Director and his | mnaviagement team realise they must increase | profitability or go out of business. A management consultant has advised them that they have the following options: 4 Cut the prices of the cars and aecept a lower profit margin. Currently, the profit margin is, 50%, | 2. Cut production costs by installing automated machinery, Mutlesusise Uae fauwry. Ta recent years, the roof of the fxctory has started to Jeak and could become hazardous, Raise prices by 20% a Increase production substantial approximately 1,000 cars a yeur. Subcontract some of the manufacture of the components toa low cost foreign manufacturer. | Type of risk Options | Option 2 Option | oS ec) A Try ta get additional ance from an outside source then have a major launch of the ears in the United Staves, 5 Set up a joint venture with an overseas Gur manufacturer. An engine manufacturer in an unstable country in South Bast Asia has expressed intercat in a joint yennure to build all the engines for Suprema Cats. If they do this, Suprema would have tv send outa team of engineers to the counts production in the early to supervise ages. 6 Use the Suprema Cars brand name, and dlesign and launch a sporty, environmentally Iriendly, dual fuel, small car. 7 Accept the approach of a major European manutacturer who is interested in providing finance and expertise ro boost sales of Suprema Cary in return for a substantial stake in the company. Reputation Personal security Country / political Environmental Design and construction Financial Morale of workforce Legal You are a member of Suprema Car's management teat. Work in small groups. 4. Identify the typos nF rick in oarh option Use the table above to help you 2 Evaluate the levels of risk according to the following seate: very high high medium low risk-free 3 Discuss the options. Consider the advantages and disadvantages of each one. 4 Atthis early stage, which option seems to be the best? Meet with other groups to discuss your ideas, j $7 66 Now listen toa conversation between Jack Dexter, Managing Director, and his Finance Director, Anita Taylan, 1 Whieh option(s) is Jack Dexter definitely not interested in? 2 Which option {s} is he qnite interested in? 3 Which option s) does he favour? Do you agree with Jack? If not, give your reasons, Writing As members of the Suprema Cars management team, write a report for Jack Dexter wnaleting the options you considered. Make recommendations on what Suprema Cars should do, Sy Whiting le pages 144 and 146 3