Risk profile of invest Cyprus, the Cyprus investment promotion agency
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Risk management is of high importance nowadays, particularly following the recent global economic crisis and turbulent times that have changed today’s business world (Vlăduț-Severian, 2014). Corporations today face numerous challenges and need to have an effective risk management framework in place that will ensure their robustness, growth and sustainability. A comprehensive risk profile can and should be the starting point of a holistic risk management approach, assisting corporations to be predictive instead of reactive when dealing with risks (Pollard et al., 2004). The aim of this thesis is to create a risk profile of Invest Cyprus, Cyprus’ governmental agency responsible for the attraction and facilitation of foreign direct investment into the country. In this regard, qualitative risk profiling methods are being used. Through a questionnaire survey among the staff of the Organisation, the main risks the Organisation is facing are defined and presented graphically in relevant risk matrices, in regards to their impact and likelihood scores, and overall risk level. As per the results of the survey, the Organisation faces a number of medium and high-level risks under all categories examined (Hazard, Financial, Operational, Strategic, Compliance and Other predefined risks). The most highly ranked risks are Financial and Other risks, which include the lack of investment opportunities and the lack of incentives for international investors. Invest Cyprus currently has no comprehensive risk management framework in place, despite having risk-related processes, just not in a systematic, documented and integrative way. Creating such a framework would definitely be beneficial for the Organisation, especially due to continuously evolving and challenging political, economic and social circumstances. Investment promotion is an area which entails a number of risks which could endanger the business continuity of the Organisation, if not handled effectively.