Risk Management in Export-Import Business - 1463 Words

Risk Management in Export-Import Business Now since the world is all connected and globalization became normal in this century, many investors and traders turn into international trading. International trading opens a very likely chance of benefiting market to do successful business. International trading includes exporting and importing which allows the businessman to connect personally with all the necessary suppliers and manufacturers which will eventually lead to cost effectiveness. However, doing global business overseas has many risks that we need to keep in mind and be aware of. Exchange rates are always in the risk of fluctuating which is clearly a risk that faces importers and Importers Importers should keep their goals as a†¦show more content†¦Also, interest rate risks are important when there is a delay between planning a project and final payment. Another risk is possible need to add and increase power and work to meet extra demands and orders. There also might be property ownership rights that might get in the way of doing business and cause an unpredicted risk. Also, intellectual property protection rules should be checked in each country of business. Another area that might pose risk is human resources that will involve business with contractors, suppliers, distributers and agents overseas. There are also unforeseen or unpredicted risks that should be kept in mind for both importers and exporters. Unexpected risks include natural disasters, terror attacks in a certain country that might destroy the export import business relations for companies. Unexpected incidents like these can increase the cost of transportation causing loss to the traders equally exporters and importers. Therefore, it is important to keep such measures in mind and try to control for those risks by using a force majeure clause in any international contract which will include solutions and protection for parties involved in such situations. One of the measures used by many project managers to manage risks is developing a tool called: A PROJECT MANAGEMENT PLAN. A Risk Management Plan is a document prepared by project managers to predict risks, estimate the effects ofShow MoreRelatedThe Ten Critical Steps for Risk Managers1399 Words   |  6 Pagesdocument is to explain, based on the documentation that is found not only in the supporting text for this curriculum but, also the Political Risk Insurance Center web-site; The Ten Critical Steps for Risk Managers. The ten critical steps as compiled, explained and assessed from our documentation expresses a guide for export professionals in purchasing political risk insurance. The subject of this document with the focus on the ten critical steps, will be the country known as the Philippines, a RepublicRead MoreMajor Problems of Agricultural Export in India1543 Words   |  7 PagesAgricultural Export in India India is one of the leading producers of certain agricultural commodities. 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