Managing International Business Risks
Risk Management is a key part to any international business expansion plans.
Knowing what to do when don’t go to plan is vital, and up-front awareness should also lead to better ways of managing the processes so that the
likelihood of problems is reduced.
- Country risk: a PEST analysis. Review of the Political, Economic, Social and Technological macro-environmental factors. This is a key component to your external analysis when conducting a strategic analysis or doing market research.
- Commercial risk: the risk of not being paid by your buyers. You need to ensure that you are getting your product to buyers
and ensuring payment.
- Payment risk: payment methods, how to protect your FX risk.
- Market risk: contingencies for changes in market conditions and product demand
If your business is new to international trade, it is important to assess and plan for the different risks you will face.
The below guide outlines the key risks you should consider:
- Marine Cargo Insurance
- Products Liability Insurance
- Trade Credit Insurance
- Political Risks Insurance
- Corporate Travel Insurance
- Insurance Premium Funding
- Credit Insurance for export receivables
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Leandra Coffey, Director, Fruity Sacks
Member
of the ECA
“Our business is about making it easy for people to make environmentally friendly choices. We are looking to expand into new overseas markets and the ECA have been a huge help in this endeavour. The ECA have given us introductions to key businesses that can help us in the markets we are looking at, and their workshops and seminars on topics relevant to exporting were extremely useful. All up, our association with the ECA has been a great asset to Fruity Sacks.”
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Featured Member
Homart Group has been established for 27 years, and specialises in manufacturing and marketing high quality Australian health supplements. Their products include two major segments of health supplements; skin care and dairy products. Their biggest export challenge is the regulations each country has for the import permits. It normally takes long time to get the registration approval before they can sell the goods into that country.