Risk Assessment for business and operations
BUSINESS AND OPERATIONAL RISKS i need 2.5 pages on each risk. (use the 10K report for STRYKER CORP)
http://www.sec.gov/Archives/ed
Some important factors that could cause the Company’s actual results to differ materially from those expressed or implied in the Company’s forward-looking statements are as follows:
• Economic factors, including inflation and fluctuations in interest rates and currency exchange rates and the potential effect of such fluctuations on revenues, expenses and resulting margins;
• Competitive factors, including technological advances achieved and patents attained by competitors as well as new products introduced by competitors;
• Challenges to the Company’s patents by competitors or allegations that the Company’s products infringe the patents of third parties, which could potentially affect the Company’s competitive position and ability to sell the products in question and require the payment of past damages and future royalties. In particular, generic drug firms have filed Abbreviated New Drug Applications with the FDA seeking to market generic forms of most of the Company’s key pharmaceutical products, prior to expiration of the applicable patents covering those products. In the event that the Company is not successful in defending the resulting lawsuits, generic versions of the product at issue will be introduced, resulting in very substantial market share and revenue losses;
• The impact of patent expirations on the Company’s business and operating results. As patents expire, competitors may be able to legally produce and market similar products or technologies, including biosimilars, which would have a material adverse effect on the Company’s sales and results of operations;
• Financial distress and bankruptcies experienced by significant customers and suppliers that could impair their ability, as the case may be, to purchase the Company’s products, pay for products previously purchased or meet their obligations to the Company under supply arrangements;
• Changes in the behavior and spending patterns of purchasers of health care products and services, including delaying medical procedures, rationing prescription medications, reducing the frequency of physician visits and foregoing health care insurance coverage, as a result of a prolonged global economic downturn;
• The impact on international operations from financial instability in international economies, sovereign risk, possible imposition of governmental controls and unstable international governments and legal systems;
• Interruptions and breaches of computer and communications systems, including computer viruses, “hacking” and “cyber-attacks,” that could impair the Company’s ability to conduct business and communicate internally and with its customers, or result in the theft of trade secrets or other misappropriation of assets, or otherwise compromise privacy of sensitive information belonging to the Company, its customers or other business partners;
• Health care changes in the U.S. and other countries resulting in pricing pressures, including the continued consolidation among health care providers, trends toward managed care and health care cost containment, the shift towards governments becoming the primary payers of health care expenses and government laws and regulations relating to sales and promotion, reimbursement and pricing generally;
preview of the answer..
Risk in the world of business refers the probability of a business organization to record lower than anticipated profits. Risks in businesses are propelled by different factors form both internal and external environments of the business. Risks in businesses are classified into both operational and business risks. Operational risks are the risks that are caused by internal decision-making and practices of an organization. A business risk refers to the risks emanating from strategic decisions concerning products and services that a business organization offers…
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