In the era of Gmail, Facebook, Twitter, and many others, people are sending less and less traditional mail. In 2009, Canada Post delivered an average of 334 pieces of mail to 14.9 million addresses. That’s down 13 per cent from an average of 377 pieces to 14 million addresses in 2005. The internet made it easier, faster and cheaper to communicate and deliver messages to whom we like. That put Canada Post in a place where it is fighting to just break even.
Last year the company was granted with a 20% budget increase by 2014, an additional $1B in borrowing power to upgrade its distribution technology, and also got a green light from the government to unspecified new lines of business. The challenges are enormous and not easy to overcome – especially for a logistic company with an established union.
- A new technology can pose a series threat for traditional companies.
- Risks with a direct impact on revenues and growth have in many cases the potential to be classified as high risk.
- Knowing your risk tolerance will eventually help to determine the level of risk and the required action. While for some a 5% impact on revenues can be considered high for others it is still low.