Essay on Essential Evaluation of Risks in Organizations

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Organizations encounter risk every day as they pursue their strategies. Hence, Risk evaluation analysis is important for loads of enterprises.

As a constituent member of FTSE 100, ISEQ 20, Euro Stoxx 50 the Euro Stoxx Select Dividend 30 equity indices , CRH plc, a diversified international building materials group which manufactures and distributes a wide range of products servicing the breadth of construction needs, from the fundamentals of heavy materials and elements to construct the frame, through value-added exterior products that complete the building envelope, to distribution channels which service construction fit-out and building renewal. We are evaluating the risks by the following steps: risk …show more content…

As a company which price listed on the London, Dublin and New York stock exchanges, CRH’s Risks is relating to the New Ordinary Shares and the Rights Issue. As it can be seen from table 1, CRH’s share price will fluctuate, which taking negative effect on investor’s confidence.

Operational Risk
The business operational risks are diversified. As CRH operates in cyclical industries which are influenced by global and national economic circumstances and the level of construction activity, the current global economic conditions have negatively impacted on CRH and may continue to impact CRH’s operation activities, influencing the operations and financial condition of CRH. Acquisitions may result in the increases in sales and revenues, however, If CRH is unable to choose the attractive goals and raise appropriate funds to complete the acquisition, CRH will not continue to acquire its growth plan.
Moreover, existing products may be replaced by other competitive products which beyond CRH’s area and CRH may lose part of the consumers and market share in the markets for those products, and the decreasing in customer demands may reduce CRH’s construction activity, which also may cause financial loss. In addition, economic, political and local business risks associated with international revenue and operations could affect CRH’s business.

Strategic Risk
A write-down of goodwill could have a significant

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