Industry: Transportation , Specialized area of engagement: Industry risk assessment
Globally, the transportation industry is marked by the presence of numerous competitors offering freight transportation services through road, rail, and marine modes. Among the different modes of transportation, road transport is the most common. In terms of revenue, North America accounts for a majority share of the total GDP revenue in the market. Although the transportation industry is witnessing promising growth, certain factors may hinder the growth of the sector.
- Terrorism: With the increasing instances of terrorist attacks across the globe, commuting has become a major concern for the passengers. Also, with the rising frequency of attacks in public places, the US authorities have issued warnings of possible threat attacks on ground transportation modes such as railways and railroad trains. This will likely affect the growth of the sector in the long run.
- The slowdown of global trade practices: With the recent economic volatility and the Brexit issue, trade practices between the European countries have been greatly affected. Since the transportation companies greatly rely on trade practices for the effective movement of goods from one place to another, this fluctuation in the economy is likely to affect the growth of the industry.
- Stringent government regulations: Regulations in the transportation space vary significantly, and governments across the globe have been seeking effective ways to formulate an effective transportation policy. Due to the implementation of stringent government policies and regulations, the transport companies are facing relentless pressures to meet the transportation demands across the globe.
To understand the relative risks and efficiently streamline their processes, leading transport companies are leveraging industry risk assessment solutions. Industry risk assessment involves gaining a comprehensive and accurate understanding of the potential risks faced by the transport companies and effectively segmenting their risks based on priorities. An efficient risk assessment solution can further help transport companies to assess the competitors and their offerings and help determine potential sectors for expansion.
The Business Challenge
A leading transport company with numerous service offerings wanted to identify and profile the key competitors and profile the potential bottlenecks to offer seamless transportation services. The client wanted to develop a new strategy to manage the potential risks affecting the transportation industry and develop appropriate policies and organizational structure to achieve their strategic aims. The primary concern of the client was to analyze the risk factors in terms of financial risks, including interest rates, foreign exchange rates, and stock prices, and losses resulting from fluctuations in the interest rates. Moreover, the client was concerned about the cost of investments and wanted to streamline their processes to boost efficiency.
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To identify, measure, and monitor risks affecting transport companies, Infiniti’s risk assessment experts carried out extensive research comprising interviews and discussions with leading stakeholders in the transport companies space. Furthermore, to assess the complexity of the risks, the client also compiled information from various secondary resources such as paid industry databases, company presentations, and industry forums in the transport companies space.
The Solution and the Business Impact
The industry risk assessment solution offered by Infiniti helped the client identify and analyze the potential factors impeding the market’s growth. The engagement also focused on profiling the key transport companies, their product offerings, and effective ways to reduce bottlenecks and sustain their service offerings. With years of expertise in offering a plethora of services for numerous Fortune 500 companies, the solution offered by Infiniti also focused on creating a robust risk management plan to curtail the associated risks involved in entering niche market segments.
Additional Benefits Offered by Infiniti Include:
- Identified the potential opportunities and determined potential factors for expansion
- Analyzed the size of the business and segmented the risk differences based on their severity