A Current Look at Japans Financial and Political Risk essays

A Current Look at Japans Financial and Political Risk essays A Current Look at Japans Financial and Political Risk A global company faces a number of different types of risks-economic, legal, political, and competitive. The nature and severity of such risks are not the same for all countries. A global company is in a position to manage such risks effectively by planning and implementing strategies aimed at diffusing risk. By keeping a breast of news-breaking developments, and not easily forgetting the past, an international company will have the ability to achieve successful use of strategic risk management in the global business environment. In the past five years, much to their disgrace, Japan has fell victim to numerous financial scandals. In addition, within the past month of April their devoted leader, Prime Minister Keizo Obuchi, suffered a life-threatening stroke. These significant events disturbed the global economy to a great extent and brought a newfound appreciation for global strategic risk management. For those International companies, with operations in Japan, that were able to effectively manage their assets amongst the arising developments were then able to avoid, or limit, risk exposure. For those who were unable to strategically manage their risk exposure the consequences were severe. In October of 1995 the details of the Japanese banking scandal began to unravel as Toshihide Iguchis, an employee of Daiwa Bank, testified to U.S. District Judge Michael Mukasey. Not only did Toshihide Iguchi pleading guilty to covering up $1.1 billion in losses he had incurred Daiwa Banks New York operations, he also told of how he had received more than $500,000 in compensation for such a scandalous task. This development astonished the entire world and would prove to almost destroy the once strong reputation of the Japanese banking industry. He went further in his testimony to implicate that senior executives, at the worlds 13th largest bank, were involved in a c...