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Risks
1. Political Risk: Sojitzâs new venture could be adversely affected by any changes in the political or economic policies of the countries it operates in. Currency fluctuations, sanctions, trade barriers, and other unpredictable changes to the political-economic environment of these countries could lead to increased costs and less access to markets.
2. Cultural Risk: Imbalances between different cultures and approaches to conducting business can often lead to misunderstandings and disputes. If Sojitz fails to accommodate for a countryâs culture, local customs, or language, it could damage its relationship with local partners or customers.
3. Currency Risk: If Sojitzâs new venture is exposed to fluctuating currency rates, this may result in unexpected losses or expenses.
4. Legal Risk: Sojitzâs new venture could face a risk of non-compliance with relevant regulations. This could lead to damage to its reputation or fines and penalties if not addressed appropriately.
5. Reputation Risk: A poor reputation can seriously damage a ventureâs chances of success. If customers, suppliers, and other stakeholders donât trust Sojitzâs integrity, they may be less likely to engage with the venture.