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Appendix Challenges and risks

Challenges Markets and the business environment

1 Identifying profitable opportunities for the business 2 Retaining existing customers/maintaining customer satisfaction 3 Responding to emerging technologies 4 Responding to changes in society (e.g. ageing, growing diversity)

Operations 5 Enhancing the quality of your products or services 6 Raising productivity to world-class levels 7 Creating and/or managing alliances or joint ventures (including public/private

partnerships) 8 Achieving desired outputs from outsourced operations, offshored operations, or shared

services 9 Doing business across cultural barriers

People 10 Attracting and retaining talented employees 11 Enhancing the performance of your workforce 12 Building the flexibility to manage change 13 Fostering innovation

Finance 14 Gaining access to finance (e.g. share capital, loans, other funding) 15 Controlling and/or reducing costs

Stakeholder interests 16 Engaging in effective dialogue with shareholders or owners (private sector)/elected

members or trustees (public and not-for-profit sectors) 17 Engaging in effective dialogue with other stakeholders 18 Balancing long- and short-term returns 19 Demonstrating corporate social responsibility

Risks 1 Changes in the economic climate 2 Market risks (i.e. competition, pricing) 3 Cost escalation 4 Compliance with government regulations and other legal aspects around how we

operate 5 Threats to business continuity from the physical environment 6 Conflict with the workforce over terms and conditions of employment 7 Employee health and safety 8 Risks associated with managing property (i.e. real estate) 9 Risks associated with information technology

10 Risks associated with tangible assets other than property and information technology 11 Risks associated with intangible assets (e.g. intellectual property) 12 Risks associated with debt levels 13 Risks faced by directors 14 Risks associated with financial security of business partners

A slightly different version of this list was given to the public and not-for-profit sectors, with ‘risks’ removed and ‘fundraising’ added.

Ann Hutchison and Peter Boxall

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