Question
The COVID-19 pandemic and subsequent lockdown in most countries has significantly increased risk for almost all businesses. Airlines have seen their revenues decline while technology
The COVID-19 pandemic and subsequent lockdown in most countries has significantly increased risk for almost all businesses. Airlines have seen their revenues decline while technology companies have seen their profits soaring. To better address risk, prudent businesses undertake a risk profile where an audit exposes potential risks that are likely to disrupt the supply chain. Examine the phenomenon, of soaring profits on one hand and declining revenues on the other, by identifying the source of risk impacting the following two companies. Include in your answer an explanation of the specific risk experienced by each company. Tencent Chinese multinational offering online entertainment. (5 marks) Lufthansa German airline and the second largest in Europe. (5 marks)
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