General Motors and Risk
GM and Risk
Murat Memic
Analyzing various global risks that General Motors faces and the respective solutions that have been taken by GM in order to neutralize the effects of these risks.
Global Corporate Finance 6313
Global Risk
Term Project
Dr John. R. Savarese
7/26/2012
In the fast moving business world, companies and firms are increasingly confronted with risk, risks that are complex and global. Emergence of new technology has made it possible for organizations and consumers to be exposed to the whole world on a scale that has not been seen before and at faster rates, hence exposing organizations to various risks; risks that may or may not be able to be anticipated or speculated or at times an organization might not be able to create solutions fast enough for these threats. Each organization is unique and operates in many areas of the world and will have risks that are both similar and different and each company may choose to mitigate the risks that may arise from vast operations differently. Organizations may choose to use one or more techniques to offset their risks, such as buying forward contracts, options, using tax incentives, etc. General Motors (GM) is a multinational organization, where they operate in countless countries over the world with assets, liabilities and sales; which is also vulnerable to risks associated with operating globally.
Even though GM has filed for a Chapter 11 bankruptcy few years ago, it is today an active organization in the world. General Motors operates in 70 countries and have presence in over 200 countries (“GM Careers”, 2012). Evidentially the spread of General Motor’s operations makes it susceptible to numerous risks within the global market, where General Motors will have to anticipate and produce solutions to risks. Solutions are created through various arbitrage techniques and with intense market research that takes into account current and historical data; and as a result they are utilized to
Murat Memic
Analyzing various global risks that General Motors faces and the respective solutions that have been taken by GM in order to neutralize the effects of these risks.
Global Corporate Finance 6313
Global Risk
Term Project
Dr John. R. Savarese
7/26/2012
In the fast moving business world, companies and firms are increasingly confronted with risk, risks that are complex and global. Emergence of new technology has made it possible for organizations and consumers to be exposed to the whole world on a scale that has not been seen before and at faster rates, hence exposing organizations to various risks; risks that may or may not be able to be anticipated or speculated or at times an organization might not be able to create solutions fast enough for these threats. Each organization is unique and operates in many areas of the world and will have risks that are both similar and different and each company may choose to mitigate the risks that may arise from vast operations differently. Organizations may choose to use one or more techniques to offset their risks, such as buying forward contracts, options, using tax incentives, etc. General Motors (GM) is a multinational organization, where they operate in countless countries over the world with assets, liabilities and sales; which is also vulnerable to risks associated with operating globally.
Even though GM has filed for a Chapter 11 bankruptcy few years ago, it is today an active organization in the world. General Motors operates in 70 countries and have presence in over 200 countries (“GM Careers”, 2012). Evidentially the spread of General Motor’s operations makes it susceptible to numerous risks within the global market, where General Motors will have to anticipate and produce solutions to risks. Solutions are created through various arbitrage techniques and with intense market research that takes into account current and historical data; and as a result they are utilized to
Cited: 1. GM. (2012). GM Careers Retrieved from (http://gm.mhire.mobi/all-about-gm ) 2. General Motors Company ( 2011) Form 10-K 3. Investopedia – Educating the world about finance (http://www.investopedia.com/)