Conclusion

The Zurich brand is associated with trust and reliability. Quality is at the heart of its customer appeal.

However, it is also about innovation and being an industry leader, both in its operations and responding quickly to emerging risks and opportunities. This allows Zurich to deliver what matters when it matters.

The budgeting process is a source of competitive advantage. Effective budgeting requires careful research and realistic planning as well as collaboration. It can help to set high objectives or move the business into new territory. The level of ‘stretch’ or challenge in a budget will depend on an organisation’s culture and ambition. Some businesses may be prepared to accept a higher risk profile for a better return. This in turn will depend on the influence of key stakeholders, such as shareholders.

To ensure the company has the capability to achieve its aims, Zurich employs graduates and finance professionals who are skilled in managing and interpreting budget dashboards.

Case 11.3. Investing in natural gas: drilling down into the risks

Introduction

Investment decisions involve weighing up the risk and the likely rewards of various options. It is often the riskiest alternatives that yield the highest possible gains while the least risky options may yield smaller rewards.

Business decision makers therefore have to weigh up risk so as to provide the most suitable rewards for stakeholders including shareholders and customers. The starting point is a company's overall aim which then filters down into a strategy, creating a balanced portfolio made up of numerous investments.

This case study examines the processes involved in weighing up risks in order to create a balanced portfolio at BG Group, one of the leading energy businesses in the UK.

Today BG Group plays a major part in global energy markets. The case study illustrates typical stages involved in deciding whether to bid for the right to develop a new gas field and, importantly, how much to bid.

Before weighing up the risks, ethics are an integral part of BG Group's considerations - i.e. making morally correct decisions, whether these be concerned with environmental issues, health and safety or any other decision involving the difference between 'right and wrong' behaviour. In other words the 'best' investment decision will balance economic, social and environmental considerations.

<== попередня сторінка	\|	наступна сторінка ==>
Monitoring the budget	\|	More than just finance

Не знайшли потрібну інформацію? Скористайтесь пошуком google:

Генерація сторінки за: 0.005 сек.