Lesson Learnt Pertaining Risk Management

Question: Discuss about the Lesson Learnt Pertaining Risk Management. Answer: Introduction: In the current years, the EU has been observed to be struggling to escape its tangled issues. The economy is seen to be recovering as well as unemployment is started to falling down; however, the anxiety of economic stagnation has not increased. The evident solution of EU crisis is to devalue the currency. This could help to regain the competiveness and minimize the budget crisis. By devaluing the crisis, the countries could reduce unemployment rate and contribute to the recovery of the economy. As put forward by Pisani-Ferry et al. (2016), the economic recovery is an integral component in minimizing the budget deficit. However, the devaluation is not an effective alternative for EU to recover the deficit (Dhingra et al. 2016). The nations could leave the Euro; nevertheless, this could be damaging and leading to capital flight. On the other side, supply chain side policies of the nations need to enhance the competitiveness as well as the efficiency. This could be significant for the economies like Portugal and Greece. Moreover, when it comes to growth, the EU has to look at the significance of economic growth. At this particular situation, the considerable policy recommendation should be spending the cuts and austerity. This could push the nations into a negative spiral of lower development, increasing unemployment as well as the tax revenue. How would the society be educated following the event It is observed that the occurrence of Brexit has emerged with an unexpected scenario that has put EU nations in a catastrophic situation. The nations under EU have been suffering from major financial crisis, which leads to high unemployment and stagnant financial growth (Carrera, Guild and Luk 2016). It is identified that due to the prolonged recession the organizations in EU have faced the obstacles in running their long-term operation of business. The large industries in EU nations have lost their ability and size to innovate the business, which has affected countrys competitiveness. The country faced a large account deficit because of the loss of competitiveness. The governments of EU nations have increased their borrowing; consequently, the interest rates also increased due to the anxiety over the default. As the impact, people have understood that sudden breakthrough in business or trade relations could largely affect the economy of country. Due to the economic crisis, the country would face downturn the in the employment opportunities. The occurrence of Brexit has opened the eye of people that country should always develop an alternative way-out for sudden crisis instead of completely relying on the trade relations with the foreign country (Van der Loo and Blockmans 2016). On the contrary, normal citizens in UK have observed and realized that a country should not rely on any external affair when it has the ability to control the whole structure effectively. It is observed that after the Brexit, the percentage of unemployment at Britain dropped to 5%, which in dicates that UK has no reason to stay in a single market where it has to benefit others affecting the own economy (Dhingra et al. 2016). Reference list: Carrera, S., Guild, E. and Luk, N.C., 2016. What does Brexit mean for the EUs Area of Freedom, Security and Justice.CEPS Commentaries. Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit on foreign investment in the UK.Centre for Economic Performance (CEP), London School of Economics and Political Science (LSE).. Pisani-Ferry, J., Rttgen, N., Sapir, A., Tucker, P. and Wolff, G.B., 2016. Europe after Brexit: A proposal for a continental partnership.Bruegel External Publication, Brussels. Van der Loo, G. and Blockmans, S., 2016. The Impact of Brexit on the EUs International Agreements.CEPS Commentary, Centre for European Policy Studies, Brussels, July,15