NEWS & INSIGHT
A new study from the Faculty of Administration and Economics at Universidad Diego Portales (FAE UDP) reveals the main challenges facing businesses in Chile and the internal response capabilities at their disposal. Among 208 surveyed directors, general managers and senior executives from an array of industries, regulatory and legal changes (37 per cent) and market risk, encompassing inflation and interest rates (35 per cent) topped the list of current concerns in the 2025 Business Risk Perception Study . “In times of political uncertainty and regulatory changes, global tensions and technological challenges, Chilean companies must demonstrate that resilience and adaptation are their greatest strengths. Each identified risk is also an opportunity to innovate, strengthen governance and build a more sustainable business future,” declared FAE UDP dean Mauricio Villena. Artificial intelligence (AI) offers one case in point. While 41 per cent of respondents said that AI amplifies certain emerging threats for their business, 49 per cent said they viewed it as a useful tool in risk management. However, potential benefits don’t translate into tangible impact automatically and there is recognition that processes of digital transformation must be accompanied by security efforts, with 62 per cent saying their companies are now more exposed to sophisticated cyberattacks. For this reason, it is perhaps no surprise to learn that 65 per cent of the study’s surveyed companies have risk management policies aligned with their strategy and 46 per cent have established risk committees. Even so, a significant 12 per cent of respondents indicated that their organisations had faced a risk event in the last year without a formal policy to manage it. The study was conducted by the UDP Economic Context Observatory at FAE UDP in collaboration with the Association of External Auditors of Chile, as part of the school’s bid to bridge academia and business by producing practical, applied knowledge for industry. TBD RISK MANAGEMENT CAPABILITIES IDENTIFIED IN STUDY OF TOP CHALLENGES SCHOOL : Faculty of Administration and Economics Universidad Diego Portales COUNTRY : Chile
Although brands are increasingly under pressure to champion diversity, equity and inclusion (DEI), initiatives can sometimes instigate a backlash if they feel irrelevant or inauthentic to their customer base. That’s the key finding of new research from Durham University Business School. Led by assistant professor of marketing Miriam McGowan, the study examined a wide variety of diversity initiatives, differing in duration and target groups, to determine their impact on customer loyalty. It identified that long-term initiatives aimed at groups with whom existing customers dissociate triggered negative reactions, such as brand avoidance. These reactions stem from customers perceiving the initiatives as threats to their identity and betrayals by the brand. McGowan suggested that brands “must carefully manage customer perceptions to avoid alienating their existing customer base. Not every awareness day fits every brand, but for companies in sectors like beauty, fashion or lifestyle, supporting Pride Month or International Women’s Day, for instance, can reflect customer values and show authentic commitment. It’s not just about showing up but showing up meaningfully”. For this reason, the researchers emphasise the importance of ensuring that genuine social commitments are communicated clearly to help build trust and dispel notions that a brand is merely jumping on a bandwagon. In addition, it suggests that brands can reduce the risks of customer alienation by using sub-brands to allow product customisation. The study also notes that many brands choose to play it safe by opting for short-term DEI initiatives, even if it is the longer-term initiatives that have greater potential for meaningful change. The research was published in the Journal of the Academy of Marketing Science and co-authored with associate professor of marketing at Birmingham Business School Louise Hassan and Edward Shiu, a marketing professor at Bangor Business School. EB WHEN DIVERSITY CAMPAIGNS COME WITH A RISK OF CUSTOMER ALIENATION SCHOOL : Durham University Business School COUNTRY : UK
Ambition • ISSUE 4 • 2025 9
Made with FlippingBook - Share PDF online