Summary: This case study focuses on a fictitious company called "GlobalTech Solutions", which specializes in the development and sale of business management software. The company has been successfully operating in the domestic market for more than a decade and is considering an ambitious international expansion. However, before making this decision, GlobalTech Solutions must carefully evaluate and manage the risks associated with this growth strategy. Learning objectives: 1. Understand the key concepts of enterprise risk management. 2. Identify potential risks in the international expansion of a company. 3. Develop strategies to effectively mitigate and manage identified risks. 4. Make informed decisions based on risk assessment. Case Description: GlobalTech Solutions, a business management software company based in the United States, has experienced consistent growth in the domestic market for more than ten years. The company's management is considering the possibility of expanding internationally to take advantage of new market opportunities and increase its revenue. However, before making a final decision, GlobalTech Solutions management recognizes the importance of conducting a comprehensive risk assessment. International expansion entails a series of challenges and potential risks that must be identified and appropriately managed. Discussion Questions: 1. Identify and list the possible risks associated with GlobalTech Solutions' international expansion. Consider factors such as cultural diversity, legal and regulatory differences, fluctuations in exchange rates, local competition, and others. 2. How can GlobalTech Solutions assess the likelihood and impact of these risks? Provide specific examples of tools and techniques that could be used. 3. Develop a risk matrix that ranks the identified risks based on their probability and impact. What are the most critical risks that the company must address immediately? 4. Suggest strategies to mitigate and manage identified risks. What steps should GlobalTech Solutions take to minimize exposure to these risks? 5. What are the advantages and disadvantages of different international market entry approaches, such as exporting, strategic alliance, and foreign direct investment? How does each approach affect risk management? Practical Section: Divide students into groups and assign each group the task of developing a risk management plan for GlobalTech Solutions' international expansion. Each group should present their plan to the class and explain how they will address the identified risks. After each presentation, other groups can ask questions and provide feedback. Finally, discuss together how GlobalTech Solutions can make informed decisions based on the risk assessments made by the different groups