Risk management in Aviva Essay Example | Topics and Well Written Essays - 2000 words

Risk management in Aviva - Essay Example Introduction The current state of this society is an effect of outcome of the long term process. Today, the entire world economy is facing a tremendous growth in every aspect of life. It can be interpreted as an effect of globalisation which can be termed as broadening of the ideas, innovation, relationship and other types of activities among the different countries of the world. Many scholars believe that globalisation is the primary reason behind these. Moreover, they also consider that international trade and business and technological developments are the most importance and crucial effect of globalisation. In fact, the growth of international trade and business and technological advancement are two primary sources of globalisation. In case of international trade, the countries form different parts get opportunities to enter into a new arena of business. In this process, the international traders come into the contact of new experiences like cross cultural diversities, better opp ortunities, and different market exposures etc. Due to effect of globalisation, the nature of trade and business has changed significantly as its importance for inter-dependency has been urged for the development of society. The term, international trade denotes to the commercial transaction between or/among countries that involves transfer of product, wealth, money, services, technology, resources etc. Due to emergence of international trade and business, the world economies have experienced a missive growth. However, with this rapid development, the multinational companies are also being exposed to multiple types of risks. Therefore, in effect, the structure and nature of business and its strategies have been changed to cope up with these risks making the entire process complex (Daniels et al, 2010, p.7). This paper will attempt to analyse the implications of multiple types of risks faced by a multinational organisations. In order to meet this objective, the primary focus of this paper will be on Aviva, a global insurance company. As this company is present in many world economies, it is exposed to a number or risks like political risks, financial risks like interest fluctuations, foreign currency fluctuations, market risks etc. This paper will also include appropriate strategies for diversifying such risks in respect of Aviva’s global insurance business. 2. Brief Description about the Company: Aviva Aviva is one of the most popular global insurance companies in the global financial service market. It is basically an UK-based company and the sixth largest insurance company in the world and the biggest in the UK market (Aviva-a, 2011). The major market for Aviva includes the broad regions like Europe, North America and Asia Pacific market covering more the 28 countries. For its international business management, the company primarily focuses on the three core strategies. Firstly, the company aims to heighten and enhance its focus on geographical segmen ted market. Secondly, it is tries to increase its consumer’s value by offering the best combination of general and life insurance. Thirdly, Aviva is also trying to strengthen its core competencies that have enabled it to be one of the market leaders in global context. The company has gained a high expertise in technical excellence, effective operational, financial discipline and marketing related activities like promotional, distribution etc (Aviva-b, 2011). The company has acquired a large base of consumers in the global market and it service nearly 53.4 million of consumer by offering value-created product with its 45000 employees worldwide. The primary products of Aviva mainly include the life