Tag: UK Economy Latest UK and Global News BusinessRiskTV

UK Economy Latest UK and Global News BusinessRiskTV

The OBR Problem: How Flawed Forecasts Dictate UK Cost of Living and Business Risk

This analysis critiques the UK’s reliance on OBR fiscal forecasts, arguing that it creates unaccountable economic policy and business uncertainty. We explore the risks of governing by five-year predictions and propose alternative models for a more stable and democratically accountable fiscal framework, empowering UK citizens and businesses to set their own destiny.

OBR Forecasts and Fiscal Rules: A Flawed System for UK Economic Policy?

The Problem with Forecasting Dependency in UK Fiscal Policy

The UK’s fiscal framework operates on a paradoxical foundation. We base binding five-year fiscal rules on Office for Budget Responsibility (OBR) forecasts that struggle to accurately predict economic outcomes just twelve months ahead. This creates a system where unaccountable economic policy dictates business conditions and living standards through increasingly speculative longer-term projections.

The core issue isn’t the OBR’s technical competence—it’s the structural flaw of building rigid fiscal rules on inevitably imperfect predictions. When even the OBR acknowledges its central forecasts have “virtually no chance of being correct,” constructing national economic strategy around these numbers represents a fundamental governance failure that undermines both democratic accountability and economic stability.

How OBR Forecasting Creates Business Uncertainty

The Volatility of Forecast-Led Policy Making

Businesses face constant uncertainty from a system that reacts to forecast revisions rather than economic fundamentals. The bi-annual budget cycle creates policy instability as taxes and spending adjustments are made to hit moving targets based on numbers that will likely be revised in the next forecast.

The Accountability Deficit in Economic Governance

When policies are presented as necessary responses to OBR forecasts, elected politicians gain convenient insulation from difficult decisions. This democratic deficit means voters cannot properly hold decision-makers accountable for tax and spending choices that fundamentally shape their economic lives.

A Better Framework for UK Fiscal Responsibility

Moving Beyond Point Forecasts to Scenario Planning

A more robust approach would replace dependency on single-point forecasts with mandatory scenario analysis. Government fiscal plans should demonstrate resilience across multiple plausible economic pathways—including downside risks and upside potential—rather than optimising for one central scenario that will almost certainly prove wrong.

Reforming the Budget Process for Economic Stability

Eliminating the two-main-fiscal-events-per-year cycle would reduce policy volatility and discourage short-term manipulation of forecasts. A single annual budget would force longer-term thinking and create a more predictable environment for business investment and household planning.

Taking Control of Britain’s Economic Destiny

Addressing Root Causes Rather Than Symptoms

The current approach to cost-of-living pressures focuses primarily on income-based solutions through benefits and tax adjustments. A more sustainable strategy would tackle structural inflation drivers through supply-side reforms in housing, energy, and regulation that directly lower costs rather than merely redistributing them.

Restoring Democratic Accountability to Economic Policy

Ultimately, the solution lies in re-establishing clear lines of political responsibility for economic outcomes. By focusing on policy levers within direct government control—rather than forecast technicalities—we can create a system where voters can clearly judge their representatives on tangible economic results.

Discover better risk management insights for your business. Connect with our community of enterprise risk leaders today.

Get help to protect and grow your business faster with less uncertainty with BusinessRiskTV

Find out more about growing your business faster here

Subscribe for free business risk management ideas risk reviews and cost reduction ideas

Connect with us for free business risk management tips 

Read more business risk management articles and view videos for free

Connect with us for free alerts to new business risk management articles and view videos 

Business Risk Analysis: The Perils of OBR-Led Fiscal Policy

This critique highlights a fundamental risk for businesses and consumers in the UK: the subordination of long-term fiscal policy to specific, short-term economic forecasts produced by a non-elected body, the Office for Budget Responsibility (OBR). From a risk management perspective, this creates a system plagued by volatility, a lack of accountability, and strategic misalignment.

Core Risk Assessment

The current framework introduces several critical risks to the business environment:

  1. Forecast Reliance Risk: Basing binding fiscal rules on precise 5-year forecasts is to build a strategy on inherently unstable ground. The OBR itself is transparent about the immense uncertainty in its projections. For instance, its own fan charts show that a forecast for borrowing in 2028-29 has a near-zero probability of being correct. For a business, this is akin to making a 5-year investment decision based entirely on a single, highly speculative market prediction. The risk is that government policy—and therefore the business environment—is constantly adjusting to what are essentially “best guesses.”
  2. Political Accountability Risk: The “accountability gap.” When fiscal policy is presented as a necessary response to the OBR’s forecast, elected politicians can abdicate responsibility for tough choices. They can claim their hands are tied by the numbers, effectively shielding themselves from direct voter accountability for tax and spending decisions. This undermines democratic oversight and makes it difficult for the electorate to “hold politicians to account,” as you state.
  3. Policy Volatility Risk: The bi-annual forecast cycle (Spring Statement, Autumn Budget) creates a “stop-start” policy environment. Businesses face the risk of sudden tax changes or spending announcements designed to manipulate a specific forecast metric for the next 5-year window. This prevents the long-term stability and predictability that businesses need to invest, hire, and grow with confidence.

A Better Way: A More Resilient and Accountable Framework

A superior risk management approach would shift the system away from its dependence on precise forecasts and toward a more transparent, stable, and outcome-oriented model. Here are the key components of a better way:

1. Shift from Point Forecasts to Scenario Planning
Instead of tethering fiscal rules to a single, inevitably incorrect number, the government should be required to present its fiscal plans against a range of plausible economic scenarios. This would include:

  • A downside scenario (e.g., recession, higher inflation).
  • A central scenario (the current forecast).
  • An upside scenario (stronger growth, lower borrowing costs).

Policies would then be designed to be resilient across these ranges. This forces a conversation about contingency plans and buffers, much like a prudent business would do, rather than betting the entire national strategy on one outcome.

2. Reform the Budgetary Process for Stability
A significant step would be to move to a single, comprehensive annual budget. This would end the disruptive cycle of two major fiscal events per year and discourage the short-term tinkering designed to “game” the OBR’s forecasts. This change has been recommended by bodies like the Institute for Government and would provide a more stable platform for business planning.

3. Focus on Controlling the Cost of Living, Not Just Incomes
Currently, the government’s primary tool for managing the cost of living is “income-based”—using benefits, tax credits, and subsidies to top up household incomes. This often leads to higher government spending and debt.

A more sustainable, “cost-based” approach would empower people to “set our own destiny” by tackling the root causes of high prices through supply-side reforms. This includes:

  • Housing: Radical reform of the planning system to significantly increase the supply of housing, which would directly lower the single biggest cost for most households.
  • Energy: Streamlining regulations to encourage investment in diverse and secure energy sources.
  • Childcare and Social Care: Reforming regulations to increase supply and competition in these sectors.

The success of these policies is measurable in tangible outcomes—more houses built, lower energy bills, more affordable childcare—that voters can clearly see and for which they can hold their elected representatives directly responsible.

Conclusion

The current over-reliance on OBR forecasts creates a brittle and unaccountable fiscal policy framework. It transfers significant business risk from the government’s balance sheet to the private sector in the form of volatility and uncertainty.

A better path involves embracing uncertainty through scenario-based planning, stabilising the policy cycle, and shifting political focus to supply-side reforms that directly lower the cost of living. This would create a more resilient economy, a more predictable business environment, and a system where voters can truly judge their politicians on the tangible outcomes they deliver, restoring a direct line of democratic accountability.

The OBR Problem: How Flawed Forecasts Dictate UK Cost of Living and Business Risk

UK OBR Forecasts: Why Business Leaders Must Rethink Risk Management Strategy

The UK Office for Budget Responsibility (OBR) has been widely criticised for its consistently inaccurate economic forecasts over the past decade, particularly its overly optimistic predictions for productivity growth. This inaccuracy is a significant business risk because UK economic policy is heavily reliant on the OBR’s projections, which can lead to abrupt and disruptive policy changes. Businesses can’t change the OBR, but they can improve their risk management by focusing on scenario planning, diversifying operations, strengthening financial controls, and investing in organisational agility to better withstand external shocks and policy shifts.

UK OBR Forecasts: A Decade of Inaccuracy and the Risk for UK Businesses

The UK Office for Budget Responsibility (OBR) has been criticised for its economic forecasts over the last 10 years, which have often been inaccurate. While it has performed better than the Treasury did before its creation, it has persistently overestimated productivity growth, a key factor in its forecasts. This inaccuracy is a significant concern because UK economic policy, particularly the government’s fiscal rules, is heavily tied to the OBR’s projections.

Accuracy of OBR Forecasts

The OBR was established in 2010 to provide independent and credible economic and fiscal forecasts, preventing the political manipulation that was common when the Treasury produced its own projections. While the OBR has been praised by institutions like the International Monetary Fund (IMF) and is considered a successful innovation, its forecasts have been far from perfect. The OBR itself acknowledges that the difference between its forecasts and actual economic outcomes can be significant, especially during periods of economic turbulence.

A major and consistent issue is the OBR’s over-optimistic forecast for productivity growth. This persistent overestimation has a cascading effect on other economic projections. Lower-than-expected productivity means slower wage growth, reduced tax revenues from income and corporation tax, and weaker household spending, which in turn reduces VAT receipts. These factors make it harder for the government to meet its fiscal targets without raising taxes or cutting spending.

The OBR’s Influence on UK Economic Policy

UK economic policy is heavily tied to OBR projections for a few key reasons:

  • Fiscal Rules: The government sets fiscal rules, such as targets for debt and borrowing, which are judged against the OBR’s forecasts. The OBR’s verdict on whether these rules are being met becomes the primary driver of the Chancellor’s Budget and fiscal decisions. This creates a system where a small change in the OBR’s forecast, often called “fiscal headroom,” can lead to significant and often rushed policy adjustments.
  • Credibility: The OBR’s independence is crucial for maintaining the UK’s financial credibility in the eyes of international investors and markets. The infamous “mini-budget” of 2022, which was not accompanied by an OBR forecast, led to a sharp drop in the pound and a rise in government borrowing costs. This event underscored the importance of the OBR’s role in providing market reassurance and preventing politically motivated “wishful thinking” from undermining economic stability.

Alternatives to the OBR’s Dominance

Ditching the OBR’s power over UK economic policy would be a high-risk move, but alternatives could include a more flexible or multi-faceted approach to fiscal policy.

  • Diverse Forecasting Sources: The government could rely on a broader range of economic forecasts from institutions like the Bank of England (BoE), the Institute for Fiscal Studies (IFS), and private sector consultancies. This would provide a more balanced view and reduce the over-reliance on a single body’s projections.
  • Reform of Fiscal Rules: A more desirable alternative might be to reform the fiscal framework itself. The current system, which focuses on a narrow “fiscal space” against a single forecast, leads to frequent and disruptive policy changes. A new framework could focus on a longer-term strategy, such as a medium-term program for fiscal consolidation, rather than a narrow-minded adherence to a specific debt target at a single point in time.

Business Risk Management Strategies

Business leaders in the UK can’t control the OBR’s forecasts, but they can adapt their risk management strategies to mitigate the impact of inaccurate projections and subsequent policy volatility.

  1. Embrace Scenario Planning: Don’t rely on a single economic forecast. Develop and analyse a range of best-case, worst-case, and most-likely scenarios for economic growth, inflation, and interest rates. This allows for a more resilient strategy that can adapt to different economic realities.
  2. Focus on Internal Data: Prioritise your own company’s data and market analysis over public economic forecasts. Monitor your customers, supply chains, and workforce closely. This provides a more accurate picture of the direct risks and opportunities facing your business.
  3. Diversify and Build Resilience: Reduce your reliance on a single market, product, or supplier. A diversified business model, a strong balance sheet, and a resilient supply chain will help you withstand external shocks, regardless of what the OBR is forecasting.
  4. Engage with Policy: Stay informed about potential government policy changes driven by the OBR’s forecasts. Engage with trade associations and professional bodies to have a voice in shaping policy and to anticipate regulatory shifts that could impact your business.
  5. Strengthen Financial Controls: Given the potential for unexpected tax increases or spending cuts, maintain a robust financial management system. This includes managing cash flow, hedging against currency fluctuations, and securing credit lines to provide a buffer against economic volatility.
  6. Invest in Agility: Foster a culture of agility and rapid response within your organisation. This allows you to quickly pivot your strategy, adjust pricing, or change operational models in response to sudden policy changes or economic shifts. This proactive approach minimises the time lag between an external shock and your company’s response.

#BusinessRisk #UKEconomy #RiskManagement #BusinessRiskTV

Get help to protect and grow your business faster with BusinessRiskTV

Find out more about protecting and growing your business 

Subscribe for free business risk management ideas risk reviews and cost reduction tips

Connect with us for free business risk management tips

The Problem with Over-Optimistic OBR Predictions

The Office for Budget Responsibility (OBR) has a track record of being overly optimistic in its economic forecasts, particularly concerning a few key metrics. This persistent overestimation isn’t a minor issue; it has a significant knock-on effect on the government’s fiscal decisions and, by extension, the entire UK economy.

The most glaring and consistent error is the overestimation of productivity growth. Productivity, defined as the output per hour worked, is the fundamental driver of long-term economic growth. When the OBR predicts that productivity will rise faster than it actually does, it creates a cascade of false expectations.

Here’s how this over-optimism creates a problem:

  • Inflated Tax Revenue Projections: Higher productivity is expected to lead to higher wages and company profits. The OBR’s models, therefore, forecast larger tax receipts from income tax, corporation tax, and National Insurance. When productivity growth falls short, these tax revenues also underperform, creating a fiscal black hole.
  • Misleading “Fiscal Headroom”: The difference between the government’s borrowing target and the OBR’s forecast for borrowing is known as “fiscal headroom.” When the OBR is overly optimistic, this headroom appears larger than it is in reality. This can tempt Chancellors to make unfunded spending pledges or tax cuts, only to discover later that the money isn’t there, forcing a difficult U-turn or a “mini-budget” style crisis.
  • Policy Instability: The OBR’s forecasts are a major input for government fiscal rules. When these forecasts prove inaccurate, it leads to a cycle of constant policy adjustments. This creates an unstable and unpredictable economic environment for businesses, making long-term planning difficult and discouraging investment.

Why UK Economic Policy is Trapped by OBR Projections

The OBR was created in 2010 to depoliticise economic forecasting and provide independent, credible analysis for the government. In many ways, it has succeeded, preventing the return to a system where the Treasury could be accused of creating politically convenient, but unrealistic, numbers. However, this success has created an almost unbreakable link between the OBR’s forecasts and the government’s fiscal policy.

This dependency is best understood through the UK’s system of fiscal rules. Governments set themselves targets for debt and borrowing, and these targets are formally judged against the OBR’s forecasts. The OBR’s assessment of whether a government is “on track” to meet its own rules becomes the single most important factor shaping fiscal policy.

Here’s why this creates a trap:

  • The “Fiscal Headroom” Squeeze: Chancellors of the Exchequer are in a constant battle to meet their fiscal targets, often by a razor-thin margin. The OBR’s forecasts for the economy—especially for productivity and growth—determine how much “fiscal headroom” (the buffer between current policy and the fiscal rules) the government has. A minor downgrade in the OBR’s forecast, often costing just a few billion pounds, can be enough to wipe out this headroom, forcing the Chancellor to scramble for new tax rises or spending cuts to stay compliant.
  • A Focus on the Short Term: The cycle of semi-annual OBR forecasts encourages a short-term, reactive approach to policymaking. Instead of developing a long-term, strategic vision for the economy, the government’s focus is on making the numbers “add up” for the next OBR report. This can lead to rushed, poorly thought-out decisions that prioritize meeting a forecast over sound long-term economic planning.
  • The Political Consequences of Defiance: The 2022 “mini-budget” provides a stark example of what happens when a government tries to sidestep the OBR. The lack of an independent forecast to accompany the radical tax-cutting agenda spooked financial markets, leading to a collapse in the pound and a sharp rise in government borrowing costs. This event cemented the OBR’s power, showing that its credibility is crucial for maintaining market confidence.

Ultimately, while the OBR provides a valuable service by preventing political manipulation, its central role in the fiscal framework makes the UK economy highly vulnerable to its forecasts. Businesses and individuals are left to navigate the consequences of a system where a single set of numbers can dictate major policy changes, from tax hikes to cuts in public services.

Alternatives to the OBR: A New Path for UK Fiscal Policy?

The UK’s reliance on the OBR’s single set of forecasts for its fiscal rules has created a system that is brittle and prone to sudden, reactive policy changes. Many economists and think tanks, including the Institute for Government and the New Economics Foundation, argue that a more robust and flexible framework is needed. This would not mean getting rid of the OBR entirely, but rather changing its role and the rules it judges the government against.

Instead of the current system, a new path could include:

  • A “Strategy-First” Approach: The government would first articulate its long-term fiscal strategy, outlining its objectives for spending, taxation, and debt over a 10- or 20-year horizon. The OBR’s role would then shift from simply validating the numbers to providing an independent assessment of whether the government’s policies are consistent with that stated strategy. This would encourage a focus on the bigger picture rather than short-term compliance.
  • Multiple Forecasts and Broader Scrutiny: The government could be required to publish its own internal forecasts alongside the OBR’s. Additionally, a new, independent body—perhaps a “Fiscal Policy Committee” similar to the Monetary Policy Committee at the Bank of England—could be introduced. This committee would review both the Treasury’s and the OBR’s forecasts, fostering a more open debate and allowing for a greater degree of professional judgment.
  • Reforming the Fiscal Rules Themselves: The rules could be made more flexible to account for economic shocks. For example, rather than a rigid target for debt to fall in a specific year, the rules could focus on a rolling, long-term trend. This would give the government more breathing room to respond to a recession or other unexpected events without being forced into immediate, and potentially damaging, tax hikes or spending cuts. Another alternative is to move beyond just targeting debt and borrowing and instead focus on a broader measure of the government’s balance sheet, including public sector assets.

These alternatives aim to replace the current system’s reliance on a single, fallible forecast with a framework that is more resilient, transparent, and focused on genuine long-term fiscal sustainability.

Read more free business risk management articles and view videos

Connect with us for free new business risk management alerts

Six Ways to OBR-Proof Your Business Risk Management

The unpredictability of UK economic policy, largely driven by the OBR’s frequently inaccurate forecasts, is a strategic risk that business leaders cannot ignore. While you can’t control the government’s fiscal decisions, you can build a more resilient and adaptable business model that is less vulnerable to these external shocks. Here are six actionable ways to OBR-proof your risk management strategy:

  1. Embrace Scenario Planning, Not Single Forecasts: Ditch the habit of basing your entire business plan on a single, optimistic economic forecast. Instead, develop a range of plausible scenarios. What happens if the OBR cuts its productivity forecast? What if inflation stays stubbornly high, forcing the Bank of England to keep interest rates elevated? Create financial models for best-case, worst-case, and most-likely scenarios, and have clear contingency plans for each. This allows you to react quickly and confidently when the economic winds shift.
  2. Focus on Your Own Data as the “Truth”: Public economic data can be noisy and subject to revision. While it provides context, the most reliable information for your business is your own data. Prioritise your internal metrics: customer buying habits, sales trends, inventory turnover, and supply chain performance. Use this real-time, granular data to make strategic decisions rather than waiting for the next OBR report. This internal focus makes your business more agile and responsive to the realities on the ground.
  3. Build Financial Buffers and Flexible Budgets: In an environment of potential fiscal instability, cash is king. Maintain healthy cash reserves and establish strong relationships with banks to secure flexible lines of credit. Move away from rigid annual budgets towards a system of rolling forecasts that are reviewed and updated on a monthly or quarterly basis. This flexibility allows you to adjust spending, investment, and hiring plans in response to the latest economic signals, rather than being locked into an outdated plan.
  4. Strengthen and Diversify Your Supply Chain: A single, fragile supply chain is a significant vulnerability. OBR-driven policy shifts can lead to unexpected tariffs, regulatory changes, or even a sudden drop in domestic demand that impacts your suppliers. Actively work to diversify your suppliers, both geographically and in terms of the companies you work with. Building multiple supplier relationships and having contingency plans in place can insulate your operations from external shocks.
  5. Invest in Agility and Cross-Training: The ability to pivot your business model is a critical form of resilience. Invest in technology and employee training that allows your workforce to be more flexible and adaptable. Cross-training employees to perform multiple roles, embracing automation for routine tasks, and having a clear communication plan for times of crisis can help your business respond effectively to sudden changes in consumer demand or government regulation.
  6. Actively Engage with Policy and External Expertise: While you can’t control policy, you can be better prepared for it. Stay informed about the government’s fiscal plans and the OBR’s commentary. Join trade associations or professional bodies that have a voice in shaping policy. Consider working with external strategic advisors who can provide an objective, expert perspective on the risks and opportunities presented by the UK’s economic and political landscape. This proactive engagement can help you anticipate regulatory changes and position your business to thrive in a volatile environment

UK OBR Forecasts: A Decade of Inaccuracy and the Risk for UK Businesses

Bank of England Quantitative Tightening Impact on UK Government Borrowing Costs 2025

Impact of Bank of England QT on UK business investment and growth

The Bank of England, in its misguided pursuit of inflation control, is inflicting significant self-harm upon the UK economy. Their weapon of choice? Quantitative Tightening (QT), a policy that involves the central bank actively selling off government bonds from its balance sheet. This seemingly technical manoeuvre has far-reaching consequences, directly impacting the cost of government borrowing and indirectly squeezing businesses and households.

The Bank of England’s Self-Inflicted Wound: How Quantitative Tightening is Crushing the UK Economy

Think of it like this: Imagine you’re trying to sell your house. Suddenly, a large institutional investor floods the market with similar properties. This oversupply inevitably drives down the price of your home. Similarly, the Bank of England’s aggressive bond sales are overwhelming the market, depressing the price of newly issued government bonds (falling bond prices = higher bond yields = higher cost of government borrowing = higher cost business and consumer borrowing = slower economic growth = higher unemployment and falling living standards).

Lower bond prices translate directly into higher yields. This means the government now has to pay significantly more interest on its debt. This increased borrowing cost has a domino effect. It forces the government to make tough choices, often leading to cuts in public services, impacting everything from healthcare and education to infrastructure projects.

But the pain doesn’t stop there. Higher government borrowing costs inevitably filter down to businesses and consumers. Banks, facing increased borrowing costs themselves, pass these expenses onto businesses through higher lending rates. This stifles investment, slows economic growth, and ultimately leads to job losses. Consumers also feel the pinch through higher mortgage rates and increased borrowing costs for everyday expenses.

The irony is that the Bank of England’s actions are exacerbating the very problem they are trying to solve. By raising borrowing costs and hindering economic growth, they are creating a self-fulfilling prophecy of higher inflation.

The Solution Lies in Stopping QT

The good news is that the solution is relatively straightforward: the Bank of England must immediately halt its QT programme. This would stabilise the bond market, reduce borrowing costs for the government, and ease the pressure on businesses and households.

Imagine a patient suffering from a self-inflicted wound. The first step towards recovery is to stop the bleeding. In this case, stopping QT is akin to staunching the flow of bonds into the market. This would allow the market to stabilise, prices to rebound, and borrowing costs to decrease.

Why is the Bank of England Doing This?

One might wonder why the Bank of England is pursuing this self-destructive path. The answer lies in their singular focus on inflation. While inflation is a serious concern, their current approach is akin to treating a fever with a sledgehammer. They are prioritising short-term pain over long-term economic health.

The Government Has the Power to Intervene

It’s crucial to understand that the government ultimately has the authority to direct the Bank of England’s actions. While the Bank of England operates with a degree of independence, its mandate is ultimately derived from the government.

The government has the power, and indeed the responsibility, to instruct the Bank of England to halt its QT programme. This is not an unprecedented move. Governments routinely intervene in the actions of central banks when the economic consequences of their policies become untenable.

A Political Decision with Real Consequences

The decision to allow the Bank of England to continue its QT programme is not merely a technical one; it is a deeply political choice. The government, by choosing inaction, is effectively choosing to allow the Bank of England to cripple the UK economy.

The consequences of this inaction are severe. We are talking about real people facing real hardships: families struggling to pay their mortgages, businesses teetering on the brink of collapse, and vital public services facing devastating cuts.

This is not about bureaucratic infighting; it’s about the well-being of the nation. The government must step in, assert its authority, and instruct the Bank of England to halt its QT programme.

Avoiding Austerity and Supporting Growth

By stopping QT, the government can prevent a further deterioration of the economic situation. This will allow businesses to thrive, create jobs, and boost economic growth. It will also free up much-needed resources for public services, ensuring that our healthcare system, education system, and other vital institutions can continue to function effectively.

The Bottom Line

The Bank of England’s QT programme is a self-inflicted wound that is threatening to cripple the UK economy. The government must act decisively to stop this destructive path. By instructing the Bank of England to halt its bond sales, the government can stabilise the market, reduce borrowing costs, and pave the way for a more prosperous future.

This is not about interfering with the independence of the Bank of England; it’s about protecting the interests of the British people. The government must not allow bureaucrats to crash the economy. The time for action is now.

Disclaimer: This article presents an opinion on the potential economic impacts of the Bank of England’s QT policy. It is not intended as financial advice. This article aims to provide a concise and engaging analysis of the Bank of England’s QT policy and its potential consequences for the UK economy. By highlighting the potential benefits of halting QT and emphasising the government’s role in guiding monetary policy, this article seeks to inform and influence the ongoing debate surrounding the UK’s economic future.

Get help to protect and grow your business faster

Find out more about Business Risk Management Club Corporate Membership 

Subscribe for free business risk management tips reviews and cost reduction ideas

Connect with us for free

Read more business risk management articles and watch videos for free

Connect with us for free

Enterprise Risk Management Magazine Article
Impact Of QT On Your Business and Life UK

Read and watch more risk analysis :

  1. Bank of England Quantitative Tightening Impact on UK Government Borrowing Costs 2025 – the link between QT and increased government borrowing costs.

  2. How does Bank of England QT policy affect UK public services – a key consequence of increased borrowing costs, relevant to readers concerned about the impact on public services.

  3. Is the Bank of England’s QT policy harming the UK economy? – for those interested in the economic implications of QT.

  4. Should the UK government intervene in Bank of England’s QT policy? – the government’s role in influencing monetary policy.

  5. Impact of Bank of England QT on UK business investment and growth – businesses and investors who are concerned about the economic impact of QT on their operations.

Relevant hashtags :

  1. #BoEQT
  2. #UKEconomy
  3. #CostOfLivingCrisisUK
  4. #PublicSpendingCuts
  5. #UKPolitics
  6. #BusinessRiskTV
  7. #ProRiskManager
  8. #RiskManagement

Pro-tips For Risk Owners

Bank of England Quantitative Tightening Impact on UK Government Borrowing Costs 2025

UK Economy January 2025

Impact of rising UK gilt yields on small business investment, SMEs and UK consumers at start of new year

The UK Debt : A Tightrope Walk for Businesses and Consumers

UK Government Debt and Impact Of UK Economy

The UK government is facing a daunting challenge: a soaring debt, a consequence of years of fiscal expansion and the lingering effects of the pandemic. This, coupled with rising interest rates, is creating a perfect storm for businesses and consumers. The yield on 30-year gilts, the UK’s equivalent of Treasury bonds, has recently climbed to 5.22%, the highest level since 1998. This surge in borrowing costs has far-reaching implications, impacting everything from mortgage rates to the viability of major infrastructure projects.

The government’s ambitious plans to issue a near-record amount of bonds in 2025 are adding fuel to the fire. With demand for these bonds plummeting to its lowest level since December 2023, the government may be forced to offer even higher yields to entice investors, further exacerbating the problem. This scenario paints a bleak picture for the UK economy, with potential consequences for businesses and consumers alike.

The Mortgage Crunch

One of the most immediate and impactful consequences of rising borrowing costs is the surge in mortgage rates. The average two-year fixed mortgage rate in the UK has now reached 5.47%, significantly higher than the historically low rates seen in recent years. This has put a severe strain on household budgets, reducing disposable income and dampening consumer spending.

For businesses, the impact is multifaceted. Rising borrowing costs increase the cost of capital, making it more expensive to invest in new equipment, expand operations, and hire new employees. This can stifle growth and hinder innovation. Furthermore, a slowdown in consumer spending, driven by higher mortgage payments, can negatively impact businesses across various sectors, from retail to hospitality.

The Construction Conundrum

The construction sector is particularly vulnerable to rising interest rates. The recent decline in the UK construction purchasing managers’ index (PMI) for three consecutive months is a clear indication of the challenges facing this industry. Higher borrowing costs make it more expensive for developers to finance new projects, leading to a slowdown in housing construction and a potential rise in unemployment within the sector.

The Human Cost

The impact of rising borrowing costs extends beyond financial metrics. Large companies across the UK are already implementing cost-cutting measures, including redundancy, in response to increased employer National Insurance contributions introduced in 2024. These job losses add to the economic uncertainty and create anxiety among workers.

Navigating the Storm: Strategies for Businesses

In this challenging environment, businesses must adopt proactive strategies to mitigate the risks associated with rising borrowing costs.

  • Cost Optimisation: Implementing rigorous cost-cutting measures is crucial. This may involve streamlining operations, negotiating better deals with suppliers, and exploring alternative financing options.
  • Diversification: Diversifying revenue streams and exploring new markets can help to reduce reliance on debt financing and improve overall resilience.
  • Innovation: Investing in research and development can lead to the development of new products and services, creating new revenue streams and improving competitiveness.
  • Risk Management: Implementing robust risk management strategies is essential to identify and mitigate potential threats. This includes conducting regular stress tests and scenario planning to assess the impact of various economic shocks.

The Road Ahead

The UK government faces a critical juncture. Addressing the burgeoning debt requires a delicate balancing act between supporting economic growth and ensuring fiscal sustainability.

  • Fiscal Consolidation: Implementing measures to reduce government spending and increase revenue is crucial to stabilise public finances. This may involve tax increases, spending cuts, or a combination of both.
  • Economic Growth: Fostering economic growth is essential to generate the revenue needed to reduce the debt burden. This requires implementing policies that support business investment, innovation, and job creation.
  • Financial Stability: Maintaining financial stability is paramount. This requires close monitoring of the financial system and taking proactive steps to address potential risks.

The path ahead is fraught with challenges, but it is not without hope. By adopting a proactive and pragmatic approach, the UK can navigate these turbulent waters and ensure a more prosperous future for businesses and consumers alike.

Disclaimer: This article is for informational purposes only and should not be construed as financial or investment advice. This article provides an overview of the latest challenges facing the UK economy due to rising borrowing costs. It offers valuable insights for businesses and policymakers on how to navigate these turbulent times and ensure a more prosperous future for the UK.

Get help to protect and grow your business faster

Find out more about Business Risk Management Club Corporate Membership 

Subscribe for free business risk management tips reviews and cost reduction ideas

Connect with us for free

Read more business risk management articles and watch videos for free

Connect with us for free

Enterprise Risk Management Magazine
Latest UK Economy January 2025

Relevant hashtags :

  1. #UKEconomy
  2. #UKDebt
  3. #InterestRates
  4. #MortgageRates
  5. #BusinessImpact
  6. #BusinessRiskTV
  7. #ProRiskManager
  8. #RiskManagement

Read more :

  1. Impact of rising UK gilt yields on small business investment
  2. How high mortgage rates affect consumer spending in the UK
  3. Construction industry slowdown in the UK due to increased borrowing costs
  4. Government debt ceiling and its impact on UK job market
  5. Strategies for businesses to mitigate the effects of rising interest rates in the UK

UK Economy January 2025

Stagflation UK 2025: Strategies for Business Leaders

Mitigating Stagflation Risk: A Guide for UK Businesses | BusinessRiskTV Business Risk Management Club

Stagflation: The UK’s 2025 Nightmare Scenario?

The UK economy is teetering on the brink. Inflation is ticking upwards, growth has stalled, and the spectre of stagflation – that dreaded combination of stagnant growth and persistent inflation – looms large. This isn’t just an academic debate; it’s a very real threat to businesses across the country. The Bank of England, with its cautious pronouncements and growing concerns, has painted a bleak picture for 2025.

What does this mean for UK business leaders? How can they navigate these choppy waters and ensure their companies not only survive but thrive? This article will explore the potential for stagflation in the UK, examine its potential impact on businesses, and offer nine actionable strategies to help leaders mitigate the risks and position their companies for success.

Understanding Stagflation: A Toxic Cocktail

Stagflation is an economic anomaly. It defies conventional economic wisdom, where typically, inflation and economic growth move in opposite directions. When growth slows, inflation usually eases as demand for goods and services weakens. But stagflation throws this rulebook out the window.

The UK’s Path to Potential Stagflation

Several factors are converging to create this perfect storm for stagflation in the UK.

  • Inflationary Pressures: Rising energy costs, supply chain disruptions, and the lingering impact of the pandemic continue to fuel inflation. The recent increase in Employers’ National Insurance Contributions (NICs) has added another layer of pressure, forcing businesses to either cut costs or increase prices. This cost-push inflation can be particularly stubborn, as businesses pass on these increased costs to consumers.
  • Waning Growth: The Bank of England has already signaled that the UK economy has stopped growing. With rising costs squeezing businesses and consumer confidence shaken, the risk of a recession is significant.
  • The Squeeze on Businesses: Businesses are caught in a difficult position. Rising costs are eroding profit margins, forcing them to make tough choices. Many are opting to increase prices, further fueling inflation. Others are resorting to cost-cutting measures, including job cuts, which can dampen economic activity and exacerbate the slowdown.

The Impact of Stagflation on Businesses

Stagflation can have a devastating impact on businesses.

  • Eroding Profit Margins: Rising costs and stagnant demand squeeze profit margins. Businesses may struggle to maintain profitability, making it difficult to invest in growth and innovation.
  • Reduced Consumer Spending: High inflation erodes consumer purchasing power, leading to decreased demand for goods and services. This can significantly impact businesses that rely on consumer spending.
  • Increased Competition: When economic growth slows, competition intensifies. Businesses may be forced to cut prices to remain competitive, further eroding profit margins.
  • Supply Chain Disruptions: Stagflation can exacerbate existing supply chain issues, leading to shortages and delays. This can disrupt production, increase costs, and damage customer relationships.
  • Increased Uncertainty: The uncertainty surrounding stagflation can make it difficult for businesses to plan and invest. This can stifle economic activity and hinder long-term growth.

Nine Strategies to Navigate Stagflation

While the threat of stagflation is significant, businesses can take proactive steps to mitigate the risks and position themselves for success.

1. Enhance Price Optimisation:

  • Dynamic Pricing: Implement dynamic pricing strategies that adjust prices in real-time based on demand, competition, and other market factors. This can help businesses maximise revenue while remaining competitive.
  • Value-Based Pricing: Focus on the value customers perceive from your products or services. This allows you to justify higher prices and maintain profitability even in a challenging economic environment.

2. Strengthen Cost Control:

  • Identify and Eliminate Waste: Conduct a thorough review of your operations to identify and eliminate areas of waste and inefficiency. This can include streamlining processes, reducing energy consumption, and negotiating better deals with suppliers.
  • Optimise Supply Chain: Review your supply chain to identify potential bottlenecks and areas for improvement. This may involve diversifying your supplier base, exploring alternative sourcing options, and improving inventory management.

3. Diversify Revenue Streams:

4. Build Customer Loyalty:

  • Exceptional Customer Service: Provide exceptional customer service to build strong customer relationships and foster loyalty. Loyal customers are more likely to remain with your business even during economic downturns.
  • Personalised Customer Experiences: Utilise data and technology to personalise the customer experience. This can help build stronger customer relationships and increase customer engagement.

5. Invest in Technology:

  • Automation and AI: Invest in automation and artificial intelligence technologies to improve efficiency, reduce costs, and enhance customer service.
  • Data Analytics: Leverage data analytics to gain insights into customer behaviour, market trends, and competitive activity. This can help you make informed business decisions and respond effectively to changing market conditions.

6. Enhance Employee Engagement:

  • Invest in Employee Development: Invest in employee training and development to improve skills and enhance productivity. This can help your business remain competitive and adapt to changing market conditions.
  • Create a Positive Work Environment: Foster a positive and inclusive work environment that attracts and retains top talent. Engaged employees are more productive and more likely to go the extra mile for your business.

7. Improve Financial Flexibility:

  • Strengthen Your Balance Sheet: Improve your financial flexibility by reducing debt, increasing cash reserves, and exploring alternative financing options. This will provide you with the financial resources to weather economic downturns.
  • Manage Cash Flow: Monitor cash flow closely and take steps to improve cash flow management. This may include optimising payment terms with suppliers, speeding up collections from customers, and exploring alternative financing options.

8. Focus on Sustainability:

  • Reduce Environmental Impact: Implement sustainable business practices to reduce your environmental impact and enhance your brand reputation. This can also help you reduce costs and improve efficiency.
  • Embrace ESG Principles: Embrace Environmental, Social, and Governance (ESG) principles to build trust with stakeholders and attract socially conscious investors.

9. Scenario Planning and Risk Management:

  • Develop Contingency Plans: Develop contingency plans for various economic scenarios, including stagflation. This will help you prepare for potential challenges and respond effectively to changing market conditions.
  • Regularly Review and Adjust: Regularly review and adjust your business strategy based on changing economic conditions and market trends. This will ensure that your business remains agile and adaptable in a dynamic environment.

The threat of stagflation in the UK is a serious concern for businesses. However, by proactively addressing the challenges and implementing the strategies outlined in this article, businesses can navigate these choppy waters and emerge stronger.

Remember, stagflation is not inevitable. By focusing on innovation, efficiency, and customer relationships, businesses can not only survive but thrive in even the most challenging economic environments.

To help you navigate these uncertain times and effectively mitigate the risks of stagflation, we invite you to explore our cost-effective advertising solutions. For up to 12 months, we can help you reach a wider audience and boost your brand visibility. Alternatively, consider joining the BusinessRiskTV Business Risk Management Club. Our exclusive membership provides you with access to valuable resources, expert insights, and a supportive community of like-minded business leaders.

By taking advantage of these opportunities, you can gain a competitive edge, enhance your resilience, and ensure your business thrives in the face of any economic storm.

Disclaimer: This article is for informational purposes only and should not be construed as financial or investment advice.

Get help to protect and grow your business

Find out more about Business Risk Management Club Corporate Membership 

Subscribe for free business risk management tips reviews and deals

Connect with us for free

Read More business risk management articles and watch videos for free

Connect with us for free

Enterprise Risk Management Magazine articles
Strategies For Business Leaders

Read more:

  1. Stagflation UK 2025: Strategies for Business Leaders
  2. Mitigating Stagflation Risk: A Guide for UK Businesses
  3. Impact of Rising Inflation on UK Businesses: 2025 Outlook
  4. How to Protect Your Business from a UK Recession
  5. Economic Uncertainty: Strategies for UK Business Growth

Relevant hashtags:

  1. #UKEconomy
  2. #Stagflation
  3. #BusinessStrategy
  4. #RiskManagement
  5. #EconomicOutlook
  6. #BusinessRiskTV
  7. #ProRiskManager
  8. #ProRiskManagement

Is the Bank of England funded by Taxpayers?

What is a danger of QE?

The £85 Billion Balancing Act: Why UK Taxpayers Might Foot the Bill for Bank of England Losses

An article in a leading UK media outlet has suggested you could have a £85 billion bill to pay before you can protect your lifestyle or improve your life.

Taxpayers set to foot £85bn bond sale bill : Britons are set to cover the cost of possible losses thanks to a type of insurance agreement drawn up between the Bank of England and the Treasury – The Times/The Sunday Times

Why should you be outraged at this expensive bill landing on your doorstep!

Here’s a comparison of the potential cost of Bank of England bond sale losses with other government expenditures:

  • Potential Bond Sale Loss: £85 billion (according to The Times/The Sunday Times)

  • NHS (National Health Service): The NHS budget for 2023-2024 is around £177 billion. So, the bond loss would be roughly half the annual NHS budget.

  • Defence: The UK’s defense spending in 2022-2023 was approximately £45.7 billion. The bond loss is nearly double the annual defense budget.

  • Basic Rate Tax Cut: The exact impact on tax revenue would depend on the size of the tax cut. However, let’s assume a hypothetical 1% cut in the basic rate of income tax. This could reduce government revenue by tens of billions of pounds per year.

In simpler terms:

  • The bond loss could eat up half the annual NHS budget.
  • It’s almost double what the UK spends on defense in a year.
  • The impact on basic tax cuts would depend on the size of the cut, but it could be significant.

Here are some additional points to consider:

  • The actual cost of the bond sales will depend on various factors, and £85 billion might be an estimate or worst-case scenario.
  • The government might find ways to mitigate the losses, such as extending the maturity of the bonds.
  • There are arguments for and against using taxpayer money to cover potential losses from the Bank of England’s activities.

Some background to this huge UK problem

The Bank of England (BoE), the central bank of the United Kingdom, stands accused of potentially exposing taxpayers to a staggering £85 billion loss. This prospect has sparked public concern and raised questions about the inner workings of the financial system. But why could such a significant loss occur, and how might it impact taxpayers in the UK? Let’s delve into the reasons behind this potential burden and explore its wider implications.

Understanding Quantitative Easing (QE) and its Legacy

To understand the potential £85 billion loss, we need to rewind to the 2008 financial crisis. In response to the crisis, the BoE, along with other central banks, embarked on a programme called Quantitative Easing (QE). Through QE, the BoE essentially printed new money and used it to purchase government bonds. This aimed to inject liquidity into the financial system, stimulate economic activity, and keep interest rates low.

The QE programme proved successful in achieving its immediate goals. However, it also left the BoE holding a massive portfolio of government bonds – assets that are now at the centre of the potential loss.

Why Could the BoE Face Losses?

There are two main reasons why the BoE might incur significant losses:

  1. Rising Interest Rates: When the BoE purchased government bonds during QE, interest rates were at historic lows. However, in response to rising inflation, the BoE has raised interest rates significantly. As interest rates rise, the value of existing bonds (including those held by the BoE) typically falls. If the BoE decides to sell its bond holdings in this environment, it could face substantial losses.

  2. Quantitative Tightening (QT): QE’s opposite, Quantitative Tightening (QT), involves the BoE selling its government bond holdings. This reduces the money supply in circulation, aiming to curb inflation. However, selling a large volume of bonds into a potentially falling market could exacerbate price declines and magnify losses for the BoE.

Why These Losses Could Fall on Taxpayers

The BoE is technically independent of the government and a private entity. However, the government ultimately guarantees the BoE’s financial stability. This means that if the BoE experiences significant losses, the government might be called upon to step in and cover the shortfall. Here’s how this could impact taxpayers:

  • Increased Borrowing: The government might need to borrow additional funds to compensate for the BoE’s losses. This would increase the national debt and potentially lead to higher taxes in the future to service the debt.

  • Reduced Spending: To offset the cost of BoE losses, the government might be forced to cut spending on public services like healthcare, education, or social security.

  • Lower Returns on Government Investments: The government also invests some of its funds in BoE assets. If the BoE experiences losses, it could mean lower returns on these investments, further impacting government finances.

Potential Mitigating Factors

While the potential cost to taxpayers is significant, there are factors that could mitigate the losses:

  • Gradual Sales: The BoE could choose to sell its bond holdings gradually over time, minimising the impact of interest rate fluctuations on their value.

  • Holding to Maturity: The BoE could simply hold onto the bonds until they mature, receiving the face value back without incurring losses. However, this would delay the normalisation of the BoE’s balance sheet and potentially limit its ability to conduct future monetary policy.

  • Restructuring the Portfolio: The BoE could explore ways to restructure its bond portfolio to minimise potential losses. This might involve selling bonds with shorter maturities or those less sensitive to interest rate changes.

The government might also consider alternative solutions, such as:

  • Sharing the Losses: The government and the BoE could potentially agree on a mechanism to share the losses, reducing the burden on taxpayers.

  • Amending the BoE’s Remit: A review of the BoE’s objectives and its financial accountability framework might be considered. Argentina’s new president wants to get rid of its central bank!

Transparency and Public Trust

The potential for a significant loss on the BoE’s bond holdings has highlighted the importance of transparency and public trust in central bank operations. Here are some key points to consider:

  • Clear Communication: The BoE needs to clearly communicate the risks associated with its QE programme and the potential for losses. This will help manage public expectations and ensure informed discussions about potential solutions.

  • Independent Oversight: Robust and independent oversight mechanisms for the BoE are crucial to ensure its actions are aligned with the public’s best interests.

  • Long-Term Planning: The government and the BoE need to work together to develop long-term strategies for managing the BoE’s balance sheet and mitigating future risks.

Conclusion: Navigating a Complex Landscape

The potential £85 billion loss for the Bank of England highlights the complexities of central bank interventions like Quantitative Easing. While QE served its purpose during the financial crisis, it has created a new set of challenges that need careful navigation.

Finding a solution that minimises losses for taxpayers, maintains financial stability, and supports economic growth requires a collaborative effort from the BoE, the government, and independent oversight bodies. Transparency, clear communication, and strategic planning are crucial to regain public trust and ensure a healthy financial future for the UK.

Here are some lingering questions for further consideration:

  • Long-Term Impact on Monetary Policy: How will the potential losses affect the BoE’s ability to conduct future monetary policy interventions effectively?
  • Global Coordination: Central banks around the world implemented similar QE programmes. Could there be benefits to a coordinated approach to unwinding them and mitigating potential losses?
  • Alternative Policy Tools: Should central banks explore alternative policy tools that might achieve similar economic goals without creating such significant balance sheet risks and liabilities for taxpayers?

The current situation presents an opportunity for the UK to re-evaluate its central banking framework and explore innovative approaches for a more resilient financial system. By fostering open dialogue, prioritising public trust, and taking a long-term view, the UK can navigate this complex landscape and ensure a stable and prosperous future.

Get help to protect and grow your business

Find out more

Subscribe for free business risk alerts and risk reviews

Connect with us

Read more business risk management articles

Connect with us 

 

What are the failures of Globalisation?

What are the negative effects of Globalisation on economic growth?

Globalisation: The Failure and the Alternatives

Globalisation has been a major force in the world economy for the past few decades. It has led to increased trade and investment, and has helped to spread technology and ideas around the world. However, globalisation has also had some negative effects, and there are growing concerns about its future.

The Failures of Globalisation

One of the main failures of globalisation is that it has not led to a more equitable distribution of wealth. In fact, the gap between rich and poor has widened in many countries as a result of globalisation. This is because globalisation has benefited the wealthy countries and the wealthy individuals in those countries more than it has benefited the poor countries and the poor individuals in those countries.

Another failure of globalisation is that it has led to a loss of jobs in some countries. This is because companies have been able to move their operations to countries with lower wages, which has led to job losses in the high-wage countries.

Globalisation has also been blamed for environmental problems. This is because companies have been able to move their operations to countries with weaker environmental regulations, which has led to increased pollution and other environmental damage.

The Negative Effects of Globalisation on Economic Growth

Globalisation has also had some negative effects on economic growth. One of the main problems is that globalisation has led to increased competition, which has made it harder for businesses to succeed. This has led to some businesses going out of business, and has also led to lower wages for some workers.

Another problem with globalisation is that it has led to increased volatility in the global economy. This is because the global economy is now more interconnected than ever before, which means that shocks in one part of the world can quickly spread to other parts of the world. This has led to some financial crises, and has also made it harder for countries to manage their economies.

Three Negative Effects of Globalisation

There are three main negative effects of globalisation that are worth highlighting:

  • The loss of jobs. As businesses have become more globalised, they have been able to move their operations to countries with lower wages. This has led to job losses in high-wage countries, such as the United States and Europe.
  • The widening gap between rich and poor. Globalisation has benefited the wealthy countries and the wealthy individuals in those countries more than it has benefited the poor countries and the poor individuals in those countries. This has led to a widening gap between rich and poor, both within countries and between countries.
  • The environmental impact. Globalisation has led to an increase in pollution and other environmental problems. This is because companies have been able to move their operations to countries with weaker environmental regulations.

The Alternative to Globalisation

There is no single alternative to globalisation. However, there are a number of things that countries can do to mitigate the negative effects of globalisation and to promote more equitable growth. These include:

  • Protecting jobs. Governments can provide support to businesses that are threatened by globalisation, such as by providing subsidies or tax breaks. They can also invest in education and training to help workers who lose their jobs find new ones.
  • Reducing inequality. Governments can redistribute income through taxes and social programs. They can also invest in infrastructure and education to help create more opportunities for everyone.
  • Protecting the environment. Governments can strengthen environmental regulations and enforce them more strictly. They can also invest in renewable energy and other sustainable technologies.

Globalisation is a complex issue with both positive and negative effects. It is important to be aware of the negative effects of globalisation so that we can take steps to mitigate them. However, it is also important to remember that globalisation has also had many positive effects, such as increased trade and investment, and the spread of technology and ideas. The challenge is to find ways to maximise the positive effects of globalisation while minimising the negative effects.

Sign up for free newsletter or follow is with your favourite social media app

More business risk management articles videos and reviews

BusinessRiskTV Business Risk Management Club Membership
Risk Management Think Tank BusinessRiskTV Risk Experts
Business Development Service
Enterprise Risk Management Magazine BusinessRiskTV ERM Magazine
Business Risk Academy

Buy and Sell Online Marketplace BusinessRiskTV Free Online Marketplace

What are the failures of Globalisation?

World Business Reports

Business Risk Management News Analysis and Review

World Business Report: Business Risk Management in the Face of Uncertainty

Keep up to date with risk news you need to know today.

Sign up for free newsletter or follow us via your favourite social media account

 

What is risk management?

Business risk management is the process of identifying, assessing, and mitigating risks that could impact a business. It is an essential part of any business, as it can help to protect against financial losses, reputational damage, and other negative consequences.

There are a number of different risk management frameworks that can be used, but they all share some common elements. These elements typically include:

  • Risk identification: The first step in risk management is to identify the potential risks that a business faces. This can be done by conducting a risk assessment, which involves brainstorming all of the possible risks that could occur and then assessing the likelihood and impact of each risk.
  • Risk assessment: Once the risks have been identified, they need to be assessed. This involves estimating the likelihood that each risk will occur and the impact that it would have if it did occur.
  • Risk mitigation: Once the risks have been assessed, they need to be mitigated. This can be done by implementing a number of different strategies, such as:
    • Transferring the risk to another party, such as through insurance
    • Avoiding the risk altogether, by changing the business’s operations or products
    • Reducing the risk, by implementing controls or procedures
  • Risk monitoring: The final step in risk management is to monitor the risks on an ongoing basis. This involves reviewing the risk assessment and mitigation strategies on a regular basis to ensure that they are still effective.

Risk analysis is a process that businesses use to understand the risks that they face and to develop strategies to mitigate those risks. Risk analysis can be used to assess a wide range of risks, including financial risks, operational risks, and strategic risks.

There are a number of different methods that can be used for risk analysis, but some of the most common methods include:

  • SWOT analysis: SWOT analysis is a framework that businesses use to identify their strengths, weaknesses, opportunities, and threats. SWOT analysis can be used to identify the risks that a business faces and to develop strategies to mitigate those risks.
  • Risk assessment: Risk assessment is a more detailed process that businesses use to estimate the likelihood and impact of different risks. Risk assessment can be used to identify the risks that have the biggest potential impact on a business and to develop strategies to mitigate those risks.
  • Scenario analysis: Scenario analysis is a process that businesses use to simulate different possible outcomes. Scenario analysis can be used to assess the risks that a business faces in different economic and market conditions.

 

Business risk news is a type of news that reports on the risks that businesses face. Business risk news can be found in a variety of sources, including newspapers, magazines, websites, and blogs.

Business risk news is important for businesses because it can help them to stay informed about the risks that they face. This information can then be used to develop strategies to mitigate those risks.

Here are some examples of recent business risk news stories:

  • The global economy is slowing down, which could lead to a recession.
  • The war in Ukraine is causing supply chain disruptions and rising prices.
  • Cyberattacks are on the rise, and they are becoming more sophisticated.
  • Climate change is posing a growing threat to businesses.

Business risk management is an essential part of any business. By identifying, assessing, and mitigating risks, businesses can protect themselves from financial losses, reputational damage, and other negative consequences. Risk analysis is a valuable tool that businesses can use to understand the risks that they face and to develop strategies to mitigate those risks. Business risk news can help businesses to stay informed about the risks that they face.

 

More business risk management articles videos and reviews

https://businessrisktv.com/business-club-membership/
https://businessrisktv.com/business-risk-experts/risk-management-think-tank/
https://businessrisktv.com/business-development-service/
https://businessrisktv.com/about/enterprise-risk-magazine/
https://businessrisktv.com/academy/
https://businessrisktv.com/risk-management-jobs-2/
https://businessrisktv.com/marketplace/business-risk-management-marketplace/

World Business Reports

Business Risk Newsletter

What do you need to know today about business risk on BusinessRiskTV

Keep your risk knowledge and business intelligence up to date. Risk managers are faced with many enterprise risk changes impacting on business decision-making. Get the latest business risk management articles on risk management news opinions and reviews.

How can risk owners inform their enterprise risk decision-making

Business Risk News : if your objective is freedom and success you will need objectivity, clarity and independence of thought from your news source to discover freedom and success in business. The wider news media is useless to you as it has its own agenda. If your recognise that this is the real truth and understand why that impacts on your ability to make your business a success then you will want to come back to BusinessRiskTV Risk News more often for help to inform your better decision making process to achieve success in business with less uncertainty. Don’t let yourself be brainwashed by the agenda of others not aligned to your business objectives.

Follow businessrisktv

 

Subscribe to our country and industry business risk newsletters

Keep up to date with emerging risks. Read and watch changing threats and opportunities via our risk management articles and videos. Pick up news on business risk information, jobs and future risks on horizon. Hear other peoples opinions on current business risks.

BusinessRiskTV.com Free Subscription Online
Subscribe to BusinessRiskTV.com for free Business Risk Newsletter

How can risk owners inform their enterprise risk decision-making

Risk Review 28 June 2022: Transitioning to a global recession in 2023

Exploring preparation for a global recession with a businessrisktv.com

What happens to commodity prices in a recession

The coming global recession will slash demand for oil copper and the like. Prices for most commodities will fall. If the world falls into depression commodity prices will fall off a cliff including oil.

Follow businessrisktv

Some prices can rise temporarily as people seek a safe haven. People may flee to gold or a few commodities that they think will safe harbour their money during a recession. However a depression, which is more and more likely, causes most commodity prices to collapse.

June’s weaker demand for commodities signals that an economic global recession is coming closer.

BusinessRiskTV

Global recession is necessary to stop runaway global inflation. The hard landing is the only option now available due to the lacklustre response to control inflation by Central banks and global national government.

Agricultural demand and energy demand is likely to keep rising during the autumn and winter and will sustain high commodity prices. This is likely to be aggravated by poor geopolitical decision-making by incompetent national leaders and global bodies like WHO, UN and WEF puppet masters and pied pippers particularly as it relates to food, water and energy. It is likely that another health crisis will emerge in the autumn winter and spring and this is likely to be managed in a restrictive way due to the propensity of these international bodies to take more and more health and economic risk management control. In addition, as demand falls due to rising inflation it can be combined with increased supply chain disruption imposed by recommended risk management action by international bodies that national governments adopt. Worse WHO wants overseeing overriding control of the next wave of the pandemic or next health pandemic.

Demand is likely to stay the same or slightly lower, but our leaders can change the supply up or down with their decisions. Reducing supply will push up prices.

Global stagflation is a certainty. When not if.

BusinessRiskTV

Global commodity prices

Wheat and oil future prices are down in June based on the most actively traded futures. Weaker commodity prices in June indicate we are transitioning to a global recession. Although commodity prices will fall, inflation will increase and stay high whilst growth turns to recession. For example there will be less demand for oil, oil prices will fall, but prices of goods and services will remain high.

Surviving global recession: how do you prepare for a recession

Businesses that can offer business discounts and consumer discounts are more likely to survive as more people become price conscious.

Businesses that supply essentials or luxury items at a discount offer more in the marketplace compared to those businesses who have let their own costs of being in business balloon and cannot offer deals and discounts.

  • Discount grocery and retail stores tend to have more footfall during a recession. Many supermarkets take advantage of their customers during the good times and suffer a loss of business and profitability when recessionary precious hit the consumers household budget.
  • People still die during recession! After the management of global risks over the last two years more people will die. businesses which cater for death are likely to perform strongly throughout a recession.
  • People turn to drink and drugs during a recession! Businesses providing alcohol and drugs will perform strongly during the coming recession.
  • You still have to pay your taxes! Accountants and tax advisors are likely to still perform well during the recession.
  • Everyone can afford a bit of lippy! Cosmetic businesses can perform well during a recession.

As for the rest of businesses, they must fully understand what’s important and what is not for their particular business model. Offering more value for money will become more important.

Wheat and oil prices are down in June based on the most actively traded futures market
Global recession 2023

Risk Review 28 June 2022: Transitioning to a global recession in 2023

BusinessRiskTV World News Today

UK and international news opinions and reviews with BusinessRiskTV.com

World news latest updates and headlines. Find breaking news stories upcoming risk analysis events and expert risk management opinion.

Business Risk News : if your objective is freedom and success you will need objectivity, clarity and independence of thought from your news source to discover freedom and success in business. The wider news media is useless to you as it has its own agenda. If your recognise that this is the real truth and understand why that impacts on your ability to make your business a success then you will want to come back to BusinessRiskTV Risk News more often for help to inform your better decision making process to achieve success in business with less uncertainty. Don’t let yourself be brainwashed by the agenda of others not aligned to your business objectives.

Read world news articles and videostream currently trending on BusinessRiskTV

contact us for more information on business and economy news reports analysis and review with businessrisktv

Enter code #WorldNewsToday

Tune into the world of business risk global economy news opinion analysis and reviews. CLICK HERE or email editor@businessrisktv.com and enter code #WorldNews.

 

Risk Magazine
Business Risk Management Magazine Free Subscription

Promote and market your business on BusinessRiskTV for 12 months

Put your products and services in front of new customers already in buying mode before your competitors do.

Cheap ways to promote your business
Find out how to promote your business locally and globally

Link into your existing online sales process direct from BusinessRiskTV or use our eCommerce solutions to increase your sales cash flow and profit.

Increase the sources of your revenue streams more sustainably. Grow your business faster with BusinessRiskTV.

Journalists Construction
Business Global
Discover better ways to protect and grow your business with BusinessRiskTV

#BusinessRiskTV #WorldNews #BusinessNews #EconomicNews #IndustryNews #CountryNews #RiskNews #InternationalNews

BusinessRiskTV World News Today

Business news articles and livestreaming reports

Alternative business risk management news articles on BusinessRiskTV.com

Latest Business Financial Market and Economic News and Risk Analysis

Risk Management news articles live online. Our risk management experts guides and risk analysis for UK and worldwide. Access the latest business news opinions and reviews for free. Network with top business leaders to increase your risk knowledge and business intelligence.

Read about other peoples experiences and opinions of the past present and future of business in the UK. Find out more about the business risks around the world in English.

Our business reviews look back at the past with a view of learning the lessons for better future. Make better business decisions now to make tomorrow in business better.

contact us for more information on business news reporting press releases and risk reviews with businessrisktv

Enterprise Risk Magazine

Enhanced experience of business reporting and business risk management analysis with BusinessRiskTV

Subscribe to BusinessRiskTV Business Live for free to receive alerts bulletins and reviews to your email inbox.

BusinessRiskTV.com Free Subscription Online
CLICK HERE or email editor@businessrisktv.com to subscribe to BusinessRiskTV Business Live for free updates to your email inbox.

Promote and market your business on BusinessRiskTV for 12 months

Put your products and services in front of more customers already interested in your business offering before your competitors do.

Cheap ways to promote your business
Find out how to promote your business locally and globally. CLICK HERE for more information.

Link into your existing sales process direct from BusinessRiskTV or use our eCommerce solutions to increase your sales cash flow and profit

Increase the sources of your revenue streams more sustainably. Grow your business faster with BusinessRiskTV.

BusinessOnlineVirtual Market
AdvertisingMarketing
Keep up to date with business developments and economic changes to inform your decision making
Business management magazine BusinessRiskTV
Business Magazine BusinessRiskTV

Why BusinessRiskTV.com is a Valuable Resource for Business Owners

Now that you know how to get business news alerts on BusinessRiskTV.com, let’s take a closer look at why this site is such a valuable resource for business owners.

  1. Comprehensive Coverage of Industries: BusinessRiskTV.com covers a wide range of industries, from finance and technology to healthcare and more. This makes it a valuable resource for business owners in any industry who want to stay informed about the latest news and trends.
  2. Timely and Reliable Information: BusinessRiskTV.com is known for its timely and reliable information. The site has a team of expert reporters who work to deliver breaking news and analysis as it happens, so you can be the first to know about important developments in your industry.
  3. Customizable Alerts: BusinessRiskTV.com offers customizable alerts, so you can choose the types of news and information you want to receive. This ensures that you’re only getting alerts that are relevant to your business and industry.
  4. In-Depth Analysis: In addition to breaking news alerts, BusinessRiskTV.com also offers in-depth analysis and commentary on the latest developments in various industries. This analysis can help you gain a deeper understanding of the trends and issues impacting your business.
  5. Free to Use: BusinessRiskTV.com is a free resource for business owners. There are no fees or subscriptions required to access the site’s news and information, making it an accessible resource for businesses of all sizes.

In today’s fast-paced business environment, staying informed about the latest news and trends in your industry is essential. By getting business news alerts on BusinessRiskTV.com, you can stay up-to-date on breaking news, market trends, and other important developments that could impact your business.

BusinessRiskTV.com offers comprehensive coverage of a wide range of industries, with timely and reliable information delivered through customizable alerts. The site also offers in-depth analysis and commentary to help you gain a deeper understanding of the trends and issues impacting your business.

Best of all, BusinessRiskTV.com is a free resource for business owners. So if you’re looking for a reliable and valuable source of business news and information, be sure to check out BusinessRiskTV.com today.

#BusinessRiskTV #BusinessNews #BusinessReports #BusinessLive #BusinessOnline #OnlineMarketplace #OnlineMagazines #OnlineBusiness #BusinessTips #EnterpriseRiskManagementNews

Business news articles and livestreaming reports with BusinessRiskTV

Ecological Ethical Environmental Economics Educational Everyday

Working together for the common good with BusinessRiskTV.com. Help us to help you.

News opinions analysis reviews and activism with local and global people. Sixth generation movement to power 4th industrial revolution faster cheaper better. Connecting the world to achieve more with less.

6G Today Tomorrow and Everyday Thereafter

How do we improve on yesterday so that today and tomorrow is better and more cost effective. What is it that we have that is good?

  • What could be better?
  • Why is it not working now?
  • How are we going to change things?
  • When will we achieve enough is good enough?
  • Where do we need to act?
  • Who can help us move forward?

Striving for perfection is not our goal. Do not let perfection be the enemy of the good enough. Focus on making realistic changes for the better happen. Dreaming of a better world tomorrow does not make the real world good enough today.

Practical action to progressively improve the world we live in

Most people in 3rd world countries are not interested in woke words. They simply want to live better tomorrow than they did today. Most peoples 1st world problems could be alleviated with a holistic approach to good business management and lifestyle choices.

4th Industrial Revolution Latest News Commentary and Risk Review
Fourth Industrial Revolution Latest News Commentary and Risk Review

Aspiration to live better wherever you live in the world can be fulfilled by solving all our problems together at once not by a piecemeal approach. Good words do not put food on the table or a roof over your head. Sodding your neighbour does not protect you from destroying everything you have built around you.

People can work together for common good

We do not need to be in the same country culture or place to work as a team to achieve what we want for ourselves. Getting what you want can help others to get what they want out of the investment of time.

Putting up trade barriers does not work for the builder of walls. Forcing people to be in your gang does not make progression towards goals fast enough. Seeing the mutual benefit at the end for all people on the bus does.

Our holistic approach to making decisions for the common good will be successful for all who lend support

If you put your shoulder to the wheel you can reap the rewards from the effort.

We are not looking for constant companions but do seek constant progress. Moving it forward a little everyday is better than big leaps now and again. We do not need to be beside you for every step but would like to be with you at the end of the journey. We can achieve more together than on our own.

BusinessRiskTV

If you are interested in getting on the same bus join BusinessRiskTV today

Join BusinessRiskTV for free today
Join BusinessRiskTV for free today. Enter code#6G

Promote and market your business on BusinessRiskTV for 12 months

Put your products and services in front of new customers already interested in your type of business offering before your competitors do.

Cheap ways to promote your business
Find out how to promote your business locally and globally. CLICK HERE to find out more.

Link into your existing sales process direct from BusinessRiskTV or use our eCommerce solutions to increase sales cash flow and profit

Increase the sources of your revenue streams more sustainably. Grow you business faster with BusinessRiskTV.

ProductivitySharing BI
Better Decisions360 Club
contact us for more information about how you can help us to help you

#BusinessRiskTV #Collaboration #GrowYourBusiness #BusinessProtection #RiskManagement #EnterpriseRiskManagement #6G #Ecological #Ethical #Environmental #Economical #Educational #Everyday #HolisticRiskManagement #ERM

Ecological Ethical Environmental Economic Educational Everyday With BusinessRiskTV

Global risk management solutions with BusinessRiskTV

Discover the best enterprise risk management tools and techniques to grow your business faster with less uncertainty with BusinessRiskTV.com

How can business leaders make better decisions?

Follow us for analysis of business risk management problems and solutions. Read global risk management solutions reviews and watch video streaming for free live and ondemand. Pick up corporate risk management tips news and reports. Join online enterprise risk management training workshops online roundtable discussions and webinars.

Follow businessrisktv global risk management solutions services for free

Global risk management solutions reviews on BusinessRiskTV. Our risk management partners showcase their best business risk management solutions. Find the best enterprise risk management solution for your enterprise. Scan the horizon for potential problems and solutions for your business.

  • Discover latest governance risk and compliance enterprise risk solutions on BusinessRiskTV reviews.
  • Transform your business for less.
  • Compare the best risk management services in our online risk management marketplace

Read more about GRC solutions on BusinessRiskTV. Use the latest risk management tools and techniques to manage the risk to your strategic operational and project goals.

Avoid retain spread prevent reduce and transfer risk with more confidence. Manage and sustain your business more easily. Boost your business performance.

BusinessRiskTV

Our network of risk management experts share how to best to manage country and industry risks using their preferred risk management solution. Find out how to minimise threats and maximise opportunities for growth.

Enterprise Risk Management Services BusinessRiskTV

Enterprise Risk Management Services BusinessRiskTV

contact us for more information on latest risk management solutions on businessrisktv

Enter code #GlobalRiskManagementSolutions

Enterprise risk management tools and techniques

Business Risk Management Solutions To Grow Your Business With Less Uncertainty With BusinessRiskTV. CLICK HERE or email editor@businessrisktv.com to find out more.

Build an effective enterprise risk management programme that embeds current best enterprise risk management principles and practices. Upgrade your risk assessment process to fit your business culture and current business marketplace.

Tackle the whole enterprise risks. Pick out specific risks you want to manage better. Flexible enterprise risk management solutions providers. Innovative risk management products and services. Identify manage and evaluate organisational risks better.

Subscribe to BusinessRiskTV for free alerts bulletins and reviews to your inbox

BusinessRiskTV Risk Management Reviews

Enter code #GlobalRiskManagementSolutions

MarketplacesExhibitions
Save MoneyRisk Magazine

Discover new ways to protect and grow your business with BusinessRiskTV

Global Risk News Opinions and Reviews

Breaking News Headlines Exclusives Opinions Analysis Live Online

Get the latest business and economy news opinions and analysis from BusinessRiskTV.com

Global Risk Management Solutions on BusinessRiskTV.com

Businesses operate in a constantly changing world, where the risks faced can be unpredictable, complex, and varied. The potential impact of risks can range from reputational damage to financial loss, and in some cases, threaten the very existence of the business. To ensure sustainable growth and profitability, businesses need to have robust risk management strategies in place that are aligned with their overall objectives and risk appetite. This is where global risk management solutions come into play, providing businesses with the tools, insights, and expertise to manage risks effectively and proactively.

BusinessRiskTV.com is an online platform that provides a range of risk management solutions and services to businesses worldwide. With a network of risk management experts and thought leaders, BusinessRiskTV.com offers a range of resources, including articles, videos, webinars, and tools, to help businesses understand, manage, and mitigate risks effectively. This article will explore some of the key global risk management solutions available on BusinessRiskTV.com and how they can help businesses navigate the complex and ever-changing risk landscape.

Enterprise Risk Management

Enterprise risk management (ERM) is a holistic approach to risk management that involves identifying, assessing, and managing risks across the entire organisation. ERM aims to create a risk-aware culture within the organisation, where risks are considered in all decision-making processes and integrated into the overall strategic planning process. BusinessRiskTV.com offers a range of resources on ERM, including articles, videos, and webinars, that can help businesses develop and implement an effective ERM strategy.

One of the key benefits of ERM is that it provides a comprehensive view of the risks faced by the organisation, allowing businesses to prioritise and allocate resources effectively. By identifying and assessing risks across all areas of the business, including operations, finance, and reputation, businesses can develop a more holistic understanding of their risk profile and take a more proactive approach to risk management.

Business Continuity Management

Business continuity management (BCM) is the process of identifying and managing risks that could disrupt normal business operations. BCM aims to ensure that businesses can continue to operate in the event of a disruption, whether caused by a natural disaster, cyber-attack, or other unexpected event. BusinessRiskTV.com offers a range of resources on BCM, including articles, videos, and webinars, that can help businesses develop and implement an effective BCM strategy.

One of the key benefits of BCM is that it can help businesses minimise the impact of a disruption on their operations and reputation. By developing a comprehensive business continuity plan, businesses can identify the critical functions and processes that must be maintained in the event of a disruption, as well as the steps needed to recover and resume normal operations. This can help businesses minimise the financial and reputational impact of a disruption, and ensure that they can continue to meet the needs of their customers and stakeholders.

Cyber Risk Management

Cyber risk management is the process of identifying, assessing, and managing risks related to information security and technology. With the increasing reliance on technology in business operations, cyber risks have become a major concern for businesses worldwide. Cyber risks can include data breaches, ransomware attacks, and other forms of cybercrime that can result in financial loss, reputational damage, and legal liabilities. BusinessRiskTV.com offers a range of resources on cyber risk management, including articles, videos, and webinars, that can help businesses develop and implement an effective cyber risk management strategy.

One of the key benefits of cyber risk management is that it can help businesses protect their sensitive information and systems from cyber threats. By identifying and assessing cyber risks, businesses can implement appropriate security measures, such as firewalls, antivirus software, and employee training programs, to mitigate the risks. This can help businesses reduce the likelihood and impact of a cyber-attack, and ensure that their operations and reputation are protected.

Compliance and Regulatory Risk Management

Compliance and regulatory risk management involves identifying and managing risks related to compliance with laws, regulations, and industry standards. Compliance risks can arise from a variety of sources, including changes in legislation, non-compliance with industry standards, and breaches of contractual obligations. BusinessRiskTV.com offers a range of resources on compliance and regulatory risk management, including articles, videos, and webinars, that can help businesses develop and implement an effective compliance and regulatory risk management strategy.

One of the key benefits of compliance and regulatory risk management is that it can help businesses avoid legal liabilities and reputational damage. By ensuring that they comply with relevant laws, regulations, and industry standards, businesses can demonstrate their commitment to ethical and responsible business practices. This can help businesses build trust with their customers and stakeholders, and enhance their reputation in the market.

Supply Chain Risk Management

Supply chain risk management involves identifying and managing risks related to the supply chain, including risks related to suppliers, logistics, and transportation. Supply chain risks can include disruptions caused by natural disasters, political instability, and changes in regulations. BusinessRiskTV.com offers a range of resources on supply chain risk management, including articles, videos, and webinars, that can help businesses develop and implement an effective supply chain risk management strategy.

One of the key benefits of supply chain risk management is that it can help businesses minimise the impact of supply chain disruptions on their operations and reputation. By identifying and assessing supply chain risks, businesses can implement appropriate risk mitigation strategies, such as diversifying their supplier base, implementing contingency plans, and enhancing supply chain visibility. This can help businesses reduce the likelihood and impact of supply chain disruptions, and ensure that they can continue to meet the needs of their customers and stakeholders.

In today’s complex and dynamic business environment, managing risks effectively is essential for sustainable growth and profitability. BusinessRiskTV.com offers a range of global risk management solutions that can help businesses identify, assess, and manage risks across all areas of their operations. From enterprise risk management to supply chain risk management, BusinessRiskTV.com provides businesses with the tools, insights, and expertise they need to navigate the complex and ever-changing risk landscape.

By leveraging the resources available on BusinessRiskTV.com, businesses can develop and implement effective risk management strategies that are aligned with their overall objectives and risk appetite. This can help businesses protect their operations and reputation, avoid legal liabilities, and enhance their competitiveness in the market. In short, global risk management solutions available on BusinessRiskTV.com can help businesses navigate the complex and ever-changing risk landscape and achieve sustainable growth and profitability.

Business management questions and answers

Follow Us For Answers To Your Business Questions

#BusinessRiskTV #GlobalRiskManagementSolutions #GlobalRiskManagementSolutionsReviews #RiskManagementSolutions #RiskManagement #Leadership #BusinessSolutions #HolisticSolutions #SmallBusiness

Global risk management solutions with BusinessRiskTV

News Headlines Breaking Stories Latest Updates Opinions Analysis

Up to date business news coverage broadcast online. Live news updates headlines pictures video analysis and comment from BusinessRiskTV.

Visit BusinessRiskTV News for latest news breaking news videos and feature stories

Contact Us for more in on news OPINIONS and REVIEWS

Subscribe to BusinessRiskTV News for free for latest news breaking news videos and feature stories

Find the best local and global news stories opinions pictures and videos on business risk events.

BusinessRiskTV.com Free Subscription Online
Subscribe to BusinessRiskTV News for free for latest news breaking news videos and feature stories

News Opinions and Reviews Live Or OnDemand

Jeffery Epstein

BusinessRiskTV News Headlines Breaking Stories Latest Updates Opinions Analysis

Best countries for business

What to do in the most business friendly and least business friendly businesses in the world with BusinessRiskTV.com

Subscribe to BusinessRiskTV for free to receive alerts and bulletins

Discover the best and worst of business on BusinessRiskTV. Get the latest business and economy news headlines opinions and reviews. Save money and time.

DISCOVER MORE ABOUT THE WORLD OF BUSINESS WITH BUSINESSRISKTV

How are G2O countries and large economic areas impacting on your business risks

Our enterprise risk magazines keep you up to date with the latest news opinions risk analysis and business reviews.

Find out how risks in the biggest countries or trade areas in the world creates threats and opportunities for your business wherever you are in the world and wherever you want to export to.

It would help if the G20 countries could create business opportunities more than they create threats for the benefit of the whole world including emerging economies. However you may also need to take actions to mitigate the impact of these countries on your business.

Speak to business leaders and entrepreneurs around the world

Connect with creative innovative ambitious leaders around the world online from your phone pc or mobile device to protect your business better and grow faster.

G20 and other 1st world countries
Enter code G20 ALERTS when you register online for free

Recommended

Country Risk News
European Union Business Magazine BusinessRiskTV EU Business Risks
Argentina Business Magazine BusinessRiskTV Argentina Business Risks
Australia Business Magazine BusinessRiskTV Business Australia
Brazil News In English BusinessRiskTV Brazil Magazine
Canada Business Magazine BusinessRiskTV Business Risk Canada
China Business Magazine BusinessRiskTV Business Risk China
France Business Magazine BusinessRiskTV France Business Risks
Germany Business Magazine BusinessRiskTV Business Risks Germany
India Business Magazine BusinessRiskTV India Business Risks
Indonesia Business Magazine BusinessRiskTV Indonesia Business Risks
Italy Business Magazine BusinessRiskTV Italy Business Risks
Japan Business Magazine BusinessRiskTV Business Risk In Japan
Mexico Business Magazine BusinessRiskTV Mexico Business Risks
Russia Magazine BusinessRiskTV Business Risk Russia
South Africa Business Magazine BusinessRiskTV South Africa Risks
Turkey Business Magazine BusinessRiskTV Turkey Business Risks
UK News BusinessRiskTV Business News Reviews Opinions
USA Business News Magazine BusinessRiskTV US Business Magazine
https://businessrisktv.com/exhibitions-expos-trade-fairs/middle-east/
Asia Pacific Business Magazine BusinessRiskTV Asia Pacific Business News
Managing Uncertainty Better
Views Opinions Reviews BusinessRiskTV Risk Perspective Risk Insight
Innovation Lab BusinessRiskTV Innovation Workshops
Virtual Roundtable Discussions BusinessRiskTV
BusinessRiskTV Business & Economy News Risk Analysis Opinions and Reviews
Disruptive Innovators BusinessRiskTV Disruptive Innovation In Business
Competitive Advantage Strategies BusinessRiskTV Sustainable Competitive Advantage
Strategic Planning BusinessRiskTV Strategic Planning
Business Resilience BusinessRiskTV Building Business Resilience
Business Risk Articles BusinessRiskTV How To Manage Risk Better
Enterprise Risk Management Workshops BusinessRiskTV Risk Awareness Training
Spanish Business News In English BusinessRiskTV Spain Business Risks
AcademyMarketplaces
ExhibitionsRisk Magazine

BusinessRiskTV What Are The Biggest Countries In The World Doing and How Does It Impact On Your Business

Citizen Journalism Articles and Videos

Have your say and give us your ideas on business economy and lifestyle for publication on BusinessRiskTV.com

How do you become a citizen journalist? Read citizen journalism articles.

Play an active role in news gathering opinion forming and risk reviews. Read business risk management articles and view videos from BusinessRiskTV Citizen Journalist. Inform your business decision making by listening to people at the sharp end of the global and local business and economy. What are top business leaders in UK and around the world saying and thinking? Our network of business risk experts and business leaders offer their view of the worlds threats and opportunities.

click here for free alerts to latest citizen journalism articles and videos

 

Journalism is printing what someone else does not want printed; everything else is public relations

George Orwell

Subscribe to BusinessRiskTV Citizen Journalism for free alerts bulletins and reviews

contact us for more information on businessrisktv citizen journalism and discover what real people think about life living and business locally and globally

Enter code #CitizenJournalist

Become one of our citizen journalists

Take control of the news on the streets online. Play your part in the process of collectible reporting analysing and disseminating news and information locally and globally.

Breaking Business News and Business Risk Management Features

BusinessRiskTV Top Business News

Looking for ordinary members of the public to report news events and business leaders or risk experts to help inform our readership

Use your own equipment social media accounts and ideas. Spread the latest information real news and own insight. Report the facts your opinions and your conclusions independent of traditional news outlets.

Use a range of digital media to present a new style of journalism online. Take an active role in creating the news and critiquing local and world events. Seize the opportunity as an amateur journalist to spread the word.

Do you have an interesting business story? Do you have an opinion on your local or global economy? Want to discuss or debate a pressing enterprise risk problem? Have a Press Release you want to spread further? Join our online business enterprise risk management community for free. Send your pictures or video to editor@businessrisktv.com 

Please include a contact number if you are willing to speak to a BusinessRiskTV video journalist.

Get the latest news opinions and reviews for Free. Join for free today as a member or subscriber

Risk Management Magazine
Freedom Of Speech

Breaking news stories and features updated and published here. Come back for more news opinions debates and business reviews. You can receive breaking news reports and features on your smartphone tablet pc or TV. You can also follow @ERMuk on Twitter to get the latest news views and reviews.

Citizen Journalists

Get the latest news opinions and reviews for Free. Join for free today as a member or subscriber

Breaking News Business Live
Risk Insight Risk Magazine

Discover better ways to protect and grow your business with BusinessRiskTV

#BusinessRiskTV #CitizenJournalism #CitizenJournalists #NewsArticles #BusinessMagazine #LifestyleMagazine #NewsViewsReviews

Negative Effect Of Censorship On Businesses

Citizen Journalism Articles and Videos

Global Business News Headlines Analysis Discussion

Get the latest business and finance news opinions and reviews on BusinessRiskTV.com

Read global business news headlines for free. What do you need to know about business and the economy today? Keep up to date with developments in business and the global economy. Network with Citizen Journalists for a different perspective on the present and the future.

contact us for more information on business and economy news information services on businessrisktv

Enter code #GlobalBusinessNews

BusinessRiskTV News Headline Risk Analysis Debate Discussion

BusinessRiskTV Business News Headlines Analysis and Comment

Latest BusinessRiskTV business news including breaking personal finance news corporate news financial news business and economic news. Get news debate and opinions for free.

Breaking Business News and Business Risk Management Features
BusinessRiskTV Top Business News

Get latest running business news online including business risk analysis and business leader comment

Expert business guides and expert business analysis for UK and global business leaders. Up to the minute business reports on global business marketplace and world economy including risk analysis on how it could affect your business.

Top Business News Today
Top Business News Today

Risk Expert Business Commentary

Get the business opinions that matter straight to your email inbox for free or read online

BusinessRiskTV Business News Debate Opinions Free Subscription Online
Latest business news debate and opinions on BusinessRiskTV

Promote and market your business on BusinessRiskTV for 12 months

Cheap ways to promote your business
Find out how to promote your business locally and globally
MarketplacesExhibitions
Save MoneyRisk Magazine
Discover new ways to protect and grow your business with BusinessRiskTV

#BusinessRiskTV #BusinessNews #EconomicNews #BusinessDebate #BusinessOpinions #RiskAnalysis #BusinessAnalysis #BusinessTips

Global Business News Headlines Analysis Discussion

Global Economy Risk Analysis and Review

Global growth and contraction news analysis and review with BusinessTiskTV

Top Business News Today

Inform your business decision making. Read and watch risk intelligence and analysis. Discover the best and worst of the global economy. Get the latest global economy news headlines opinions and reviews. Save money and time with BusinessRiskTV.

The Threat of Rising Bond Yields in European and American Bond Markets

By Keith Lewis 20th October 2023

Bond yields are the interest rates that investors receive when they lend money to governments or corporations. Bond yields have been rising steadily in recent months, both in Europe and the United States. This is due to a number of factors, including the Federal Reserve’s plans to raise interest rates and concerns about inflation.

Rising bond yields can have a number of negative consequences for investors and businesses. For investors, rising bond yields can lead to losses on existing bond holdings. For businesses, rising bond yields can make it more expensive to borrow money.

This article will explore the threat of rising bond yields in European and American bond markets in more detail. It will also discuss some of the risk management actions that investors and businesses can take to protect themselves from this threat.

Why are bond yields rising?

There are a number of reasons why bond yields are rising in European and American bond markets. One reason is the Federal Reserve’s plans to raise interest rates. The Federal Reserve raises interest rates in an effort to combat inflation. When interest rates rise, the cost of borrowing money increases. This can lead to a decrease in demand for bonds, which can cause bond yields to rise.

Another reason for rising bond yields is concerns about inflation. Inflation is the rate at which prices for goods and services are rising. When inflation is high, investors demand higher returns on their investments to compensate for the loss of purchasing power. This can lead to an increase in bond yields.

What are the risks of rising bond yields?

Rising bond yields can have a number of negative consequences for investors and businesses.

For investors, rising bond yields can lead to losses on existing bond holdings. When bond yields rise, the prices of existing bonds fall. This is because investors can buy new bonds with higher yields, which makes older bonds with lower yields less attractive.

For businesses, rising bond yields can make it more expensive to borrow money. Businesses often borrow money to finance growth and investment. When bond yields rise, the cost of borrowing money increases. This can make it more difficult for businesses to finance their growth and investment plans.

What can investors and businesses do to protect themselves from the threat of rising bond yields?

There are a number of risk management actions that investors and businesses can take to protect themselves from the threat of rising bond yields.

Investors

Investors can protect themselves from the threat of rising bond yields by diversifying their portfolios and investing in shorter-term bonds.

Diversification means investing in a variety of different asset classes, such as stocks, bonds, Bitcoin and property. By diversifying their portfolios, investors can reduce their overall risk.

Investing in shorter-term bonds can also help investors to protect themselves from rising bond yields. Shorter-term bonds have less interest rate risk than longer-term bonds. This is because shorter-term bonds are more likely to mature before interest rates rise significantly.

Businesses

Businesses can protect themselves from the threat of rising bond yields by hedging their interest rate risk and borrowing money at fixed interest rates.

Hedging interest rate risk involves using financial instruments to offset the risk of changes in interest rates. There are a number of different hedging instruments available, such as interest rate swaps and options.

Borrowing money at fixed interest rates can also help businesses to protect themselves from rising bond yields. When businesses borrow money at fixed interest rates, they lock in the interest rate for the life of the loan. This protects them from the risk of rising interest rates during the term of the loan.

Conclusion

Rising bond yields can have a number of negative consequences for investors and businesses. However, there are a number of risk management actions that investors and businesses can take to protect themselves from this threat.

Investors can protect themselves from the threat of rising bond yields by diversifying their portfolios and investing in shorter-term bonds. Businesses can protect themselves from the threat of rising bond yields by hedging their interest rate risk and borrowing money at fixed interest rates.

I urge investors and business leaders to take risk management action to protect themselves from the threat of rising bond yields. By taking action now, you can minimise the potential impact of rising bond yields on your investments and your business.

Top Business News Today
What do you fear this year

Join the global risk experts forum online

Global Business Development With BusinessRiskTV.com

Click here or email editor@businessrisktv.com to subscribe to BusinessRiskTV.com for free enter code #GlobalEconomy

Subscribe to BusinessRiskTV for free global economy alerts bulletins and reviews to your inbox

contact us for more information on global risk analysis

Enter code #GlobalRiskAnalysis

World Economic News Headlines

Read global economy articles and watch video updates on global economic news headlines business risk analysis business leader debate and discussion. Entrepreneurs executives and business leaders take part in our strategic growth business forum online events from you phone pc or mobile device.

Inform your business decision making from expert panel and member discussions and sign up for innovative business development online workshops from anywhere in the world where business innovators operate.

Global Economy News Analysis Review Live Online

Current global economy news articles and video content. Stress test the global economy with latest forecasts reports and global economic analysis.

Promote and market your business on BusinessRiskTV Global Economy Review for 12 months

Cheap ways to promote your business

Find out how to promote your business locally and globally. CLICK HERE or email editor@businessrisktv.com entering code #GlobalEconomyReviewMarketing

Put your products or services in front of new people already interested in your type of business offering.

Link into your existing online sales process direct from BusinessRiskTV or use our eCommerce solutions to increase your sales cash flow and profit

Increase the sources of your revenue streams more sustainably. Grow your business faster with with BusinessRiskTV.

BusinessRiskTV World Economy Journal

Taking a look at global economy data. Undertaking business risk analysis. World economy and business research and development reports and analysis.  

Subscribe to BusinessRiskTV for free to receive email alerts to live events on demand video reports and global business analysis reports

BusinessRiskTV.com World Economy Journal
Enter code #GlobalGrowthForum
AcademyMarketplaces
ExhibitionsRisk Magazine

Discover better ways to protect and grow your business with BusinessRiskTV

#BusinessRiskTV #GlobalGrowthForum #GlobalEconomy #GlobalNews #GlobalMarketplace #GlobalMagazine #GlobalReview #GlobalReports #GlobalBusiness #GlobalEconomy #GlobalToday #InternationalTrade #Entrepreneurship #BusinessCoaching #RiskManagement #EnterpriseRiskManagement #GlobalEconomyReviewMarketing

Global Economy Risk Analysis and Review