Firms urged to take on “calculated risks”, research head claims

18 March 2010

Firms need to be prepared to take on “calculated risks” if they are to expand in the current economic climate, a leading researcher has claimed.

Vinnie Aggarwal, chief economist at Frost & Sullivan, made the comments as part of an analysis of the markets and how businesses need to perform to increase profit levels during 2010.

In his statement, the finance expert stated that opportunities for companies in Asia will continue to grow while Europe’s recovery from the financial crisis will be slower by comparison.

Mr Aggarwal said that businesses need to have a long-term growth strategy for the future.

“Unless firms are willing to take some calculated risks, they may miss key opportunities. In fact, some of today's top corporations have started in the middle of a recession, with 16 of the 30 companies that make up the Dow industrial average claiming such an origin story.”

The economist cited comments from Warren Buffet, chief executive officer at Berkshire Hathaway, as a good example for businesses to follow.

Organisations need to “be fearful when others are greedy, and be greedy when others are fearful," the investor was quoted as saying.

By Jim Ottewill

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