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Eastern Exposure
Oleh:
Gersten, Alan
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
Journal of Accountancy vol. 188 no. 2 (Aug. 1999)
,
page 53-60.
Topik:
EXPOSURE
;
eastern exposure
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
JJ85.9
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
In 1986 on Sumbawa, a remote Indonesian island east of Bali, Newmont Mining Corp. undertook the biggest mining endeavor in its history. Financial executives knew that to mine rich gold and copper-ore deposits the Denver - based company would have to assess and manage many cultural and logistical risk factors. The project, called Batu Hijau, was vulnerable to unforeseen political, social and financial forces. But even knowledgeable risk specialists could not have predicted the confluence of circumstances - including the overthrow of the Indonesian government, riots in the capital, the worst copper prices in a decade and the lowest gold prices in 15 years - that would plague the company during the 13 - year development of Batu Hijau. With Southeast Asia in economic turmoil, American companies doing business there have had to upgrade their risk assessments. Many businesses, apparently afraid of endangering current or future holdings, declined to talk about their risk apparatus in Asia. However, key financial personnel at Newmont, Wang Global, Dana Corp. and Price Waterhouse Coopers explained how they deal with or advise people on Asia's ongoing travail. Since CPAs frequently encounter risk - management issues in business - their own or clients' - these stories provide interesting insights into the challenge posed by Asian markets.
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