Many automotive companies have moved considerably from the traditional view that the primary objective of investment in emerging markets is cost savings. Balancing market potential is also a strategic imperative. Many companies that have invested or are operating in these markets are still working out the most effective approaches to doing business. They are also managing risk in areas that are far from the headquarters in a relevant and cost-effective manner. While some companies have developed effective practices, many respondents cite the need for improvement in the overall approach.
We believe that one of the main takeaways of this report is the effectiveness of a holistic, integrated overall approach to risk that gets freshened periodically to reflect current market conditions. The best approach to risk management allows for an integrated answer on how to align effectively the relationship between risk, control, and performance in a way that directly allows for an increase in competitive advantage and enterprise value.