International Risk Management Essay Example | Topics and Well Written Essays - 2500 words

International Risk Management - Essay Exampleom now, this essay will provide the readers with perceptive map to explain the firms personal line of credit model followed by discussing its strengths and vulnerabilities as a globally known social network. In the light of the business model, risk factors that Facebook is currently exposed to will be identified. Eventually, the underlying drivers behind the corporations current risk factors will be tackled in details. This nurture is useful in terms of enabling the company forecast its future risks.This essay will in addition examine the appropriateness and effectiveness of Facebooks risk management strategies in terms of making the company survive the global challenges of social networking sites 10 years from now. In order to prevent the development of potentially new risks as a result of implementing the companys current risk management strategies, approximately of the recommended proactive and holistic risk management strategies which can be used in allowing the company proctor and manage its risk exposure will be tackled in details.Although Mark Zuckerberg the founder of Facebook admits that the company is stock-still searching for a business model that will enable the company have a move in path to profit ability (Manjoo, 2008), the business model of Facebook seems to be based on network effects business model. It means that the company is using networking effect by inviting individuals more than 13 years old to file with the social networking website. In line with this, the higher the number of individuals who register with Facebook would mean an increase the company ability to earn from investment value and advertising gains. Since the goal of Facebook is to increase the number of its online users, the company decided to involve Digg in its new business model (ONeil, 2010).According to Nicole Ozer technology and civil liberties policy director for ACLU of Yankee California, Facebook is in the bus iness of making money, not protecting privacy (Swartz, 2010). In