Risk Management Plan brings into perspective the significant role that security plays in the livelihoods of people across the globe. It particularly assesses the power of art as a form of investment for a country. The market has a unique design that gives prospective investors in the industry the urge and opportunity to learn more about risks and ways of enhancing investment into the rapidly growing industry. A comprehensive research concerning the expected benefits and probable challenges is critical to the realization of the fortunes of investors in the markets.
Knowledge about the global market for an investor in art industry is fundamental to every investor around the world irrespective of gender, race, language or nationality. A survey of the market shall not only take into account the vicissitudes of the international arts market but also examine market history, buying patterns and the projected trend in the future for many countries worldwide. Risk Management Plan provides more long-term returns as compared to many other investments. In addition, it has an attractive risk as well as return profile. Investors in this rapidly growing industry must consider all the advantages and disadvantages that come along with investment in art markets.
Economic impact or implications on the other hand adopts and implements a broader perspective in relation to the general economy of the host country. This relates to the examination of the possible economic objectives in relation to transformation of the GDP performance, reduction of unemployment rate, and attraction of relevant investment in the context of the host nations across the globe. The organization and execution of the event might be too expensive to generate economic rents thus deterioration of the situation through activities such as transformation of huge events to form ‘white elephants’ projects. These projects might jeopardize the economic growth and development of the host nations after the conclusion of the event through overcrowding the growth and development plan.
The essay seeks to examine and analyze the international markets while specifically taking into consideration the gains once they complete their move to venture and endeavor fully into the industry.. The current Wall Street economic meltdown accentuates the value of investing mainly as a substitute to stocks and bonds. For instance, the US economy and major world economies experienced one of the most devastating economic crises that adversely affected trading in stocks and bonds as well as other economic activities in respective countries.
The International Markets has been a subject in which most investors across the globe have taken keen interest. Pitiable performance of stocks and bonds in the world market has triggered most investors worldwide to reconsider their investment destinations. Although risk management investment might not live to the expectations of many investors in the short run, it is an ideal option for investors in the industry who want to accomplish the gains of investing in art in the long-term basis. Despite the impending challenges that are affecting every industry in the world today, initiation of risk management emerged as one industry in the world least devastated by economic downturns. Investors are quickly shifting their investment strategies from the traditional venture in stocks and bonds to relatively dynamic and vibrant industries even during economic crisis.
Risk Tools and Techniques section
The research process entails assessment of secondary materials to understand the origin and evolution of international art markets. Over the past three decades, countries under the European Union have dominated the market producing variety of art products. In addition, they have had some of the prolific artists in the history of art and international art market in general. However, things changed with growing interest of countries such as China and US in the art market. America has in effect taken over the world art holding the largest stake while China now occupies second place.
Many theories have attempted to explain the origin and developments of art market over the past years. Constant inventions and innovations have played critical part to the process of expanding art market, which has in turn enabled the market to accommodate several new players over a relatively shorter period. State of the Art has been an overriding philosophy that has enabled major world economies step up effort to enjoy bigger command of the market. However, China has facilitated its creativity and innovation with the ultimate reward being total dominance of the world Fine Arts.
Risk Management for both the qualitative and quantitative
The international arts market has accomplished remarkable progress amid economic turbulences economies of the world. Although European countries were the dominant economies in the market of arts and artists, America and China seem to have taken going by the percentage stake they currently hold in the global market. China in particular has excelled in fine arts for the past two decades overtaking even the United States. Even though the rapidly growing Asian country is currently second overall, chances are that China might topple America by 2030. America has however increased its investment in other forms of art, which run into millions of US dollars. Dwindling economic performance has been one of the challenging situations for America as compared to China. For instance, the global economic downturn of 2008 posed great challenge to America even as they put on brave face to revive the diminishing fortunes in the international arts market. Many researches show an upward trend in growth of a sector that has played critical role to revive American economy. The UK holds substantial stake in the international arena of arts. However, the current stake is still far below the country’s share of the market about three decades ago.
The China factor has been the major reason to the dwindling fortunes of UK and many other European countries as the former has put up string determination toward taking control of the most vibrant section of the art. In essence, China leads in fine arts going by the amount of products it has released in the market recently. Fine arts have been a major contributor to the overall GDP of China for the last ten years. Incidentally, the major economic crises have had less impact to the growth prospects of the China economy relative to American or even the economy of countries falling under the European Union. It took advantage of the bad economic record of the Western countries in 2011 to expand its economic base exploring new markets for art products among other finished products. The country is among the leading exporters and importers around the world going by the scale of imports and exports in past few decades. The US has however emerged as the greatest competitor of China of all times going by its GDP, amount of investment in various sectors of the economy, and level of imports and exports across all pillars of the economy. Poor performance of the countries of the European Union has been subject to speculation and scrutiny though changing economic and political fortunes have been the major cause.
The conceptual framework for the risk management plan helps in describing shared vision, which provides coherence for both advanced and initial art works. Focusing on various themes, the conceptual frameworks helps in preparing artists who will be in a position to apply their knowledge and skills to reflect and refine art practices. The frameworks will also help in identifying and solving problems in the contemporary art works. In this case, the Conceptual framework will be beneficial for researchers when it comes to guiding their inquiries. The framework will also present the researchers in relation to art works either internationally or in specific literatures. The Conceptual framework for the International art works will summarize the independent and dependent variables in International art works research studies and the specific relation between them.
Probability and impacts section of the risk management plan
Generally, the conceptual framework is the theoretical framework of its operationalization. Conceptualization entails the process of forming various ideas, which are basic. It also entails designs and plans formation basing on facts, examples and situations. In checking the conceptual framework for international art works, the article will therefore check the artist’s ideas that are basic. It will observe some of the artwork and the designs international artists implement for the International art works and their dealings. In forming these conceptualization frameworks for the International art works, the researchers will be trying to make the research work on International arts meaningful and general. Some of these theories models regarding the International arts will be essential in stimulating research and knowledge extension. This is made possible by providing impetus and direction for the study. Generally, Conceptual Framework for International artworks will clarify concepts regarding the International art works. It will also propose relationships that exist between concepts in this study. The Conceptual Framework explains observations and encourages theories on the development, which is important in the practice
The research study analyzes the necessary steps, which global countries take in transforming the art field and ensuring that the international art markets are more competitive. The research also determines the fundamental roles that the Chinese nation has played in transforming the international art markets. Being a domain of the European countries, the articles also states the roles that the nation has played in reversing the whole concept. The declining European fortune is also another major feature that the study unveils. In fact, most of the European nations experience various challenges in trying to fit in the modern art market while their stakes in the International fields seems to diminish yearly. The study also reveals how the Chinese and the American nation are leading other nations in reclaiming a big share in the art market globally. The study further reveals some of the future prospects of the global art markets. The Chinese nation is almost taking over the control of the art markets despite various by some of the countries in the West to review their art strategies in reclaiming major market stakes. The article observes that, one of the major aspects that China has undertaken in that gives it a major advantage over the rest of the Global nations is investing in Fine Arts. This aspect has given the nation a competitive advantage over the rest of the nations globally.
The research study reveals that the International markets are currently shifting from the west to the East. It further claims that China is the leading country in polarity reversal when it comes to global art markets. China boosts of colossal revenues when it comes to fine Arts hence gaining considerable stakes in the International markets. It has currently surpassed most of the European nations in global rankings. Among the countries that engage in International art works, the United States is China’s biggest competitor when it comes to art market. Internationally, China occupies the second spot.
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