In today’s business environment every single business faces risks or challenges, whether
they are big or small. While the challenges and risks for USPS is becoming more intricate
all the time so the ability to manage the challenges and risks is so crucial for USPS’s
success. The biggest challenge that USPS faces and will face more so in the future is the
advancement in technology. This technology includes email and social media with reduced
written communication. Even though USPS is an independent company, congress requires
USPS to fully fund their pension obligation. USPS is financially onerous. Congress has not
allowed an increase in the bulk mail rate either which also isn’t helping them financially.
There is a law that was set in 2006 that requires USPS to make advanced payments for
retiree health benefits. The cost of the mandate is more five billion dollars annually and
USPS has defaulted on the payment for the past four years. Postal unions have fought for
the fact that USPS could bring revenue if it wasn’t for the prefunding expenditure, but
agency officials argue that the organization is too knee high in debt and in need of some
newer equipment for them to come out of debt in the future. USPS has asked Congress to
restructure or completely end the requirement so that they can finally be out of debt (Does