enterprise risk management currency risk country risk

52 Risks® Update: Emirates Airlines: Currency Risk and Country Risk and a New Risk Management Guide for Directors – Featuring 52 Risks®

Emirates Airlines: Currency Risk and Country Risk

Emirates A380

Source: Marwan Naamani/AFP/AFP/Getty Images

Companies have many choices around how and they grow. Expansion into offshore markets features in many strategic plans. The choice to expand internationally is not without risk.

Emirates Airlines has experienced a range of issues in African countries You can read more about its issues here.

Emirates Airlines’ experience highlight the potential risks and minefield to be navigated. According to the article, in 2015 Emirates had US$600m in funds locked up in Nigeria.

There are a range of currency-related risks that arise from operating in overseas justifications. It is critical to carefully understand the financial risks in every aspect of a business and consider all downside scenarios. The mitigants for these risks will depend on the situation but can include partnering with local firms, political risk insurance and diversification.

To stay abreast of geopolitical issues, the 52 Risks® website has a list of government, academic, commercial and media resources was compiled last year. It can provide business leaders with insights and tools to better identify and assess geopolitical risks and issues around the world. Click here to read the full list.

Risk Management Guide for Directors Featuring 52 Risks®

Governance Institute Risk ManagementGuide

The Governance Institute of Australia recently published a plain English, no nonsense guide to risk management for directors. Demystifying risk management and distilling it down into practical advice boards can adopt, continues to be a challenge for the risk community.

The guide highlighted the 52 Risks® framework as an example of a risk taxonomy.

The guide has lots of footnotes and references for those wanting to learn more about risk governance and risk management.

Click here to download the guide.