D2 | Export risks

Whether you like it or not, export comes with a risk or two. Or three.

Exporting always involves risks, often different and more complex than those in the domestic market. It is essential to face these risks early and understand their variety and impact.

International trade can be affected by many risks, including but not limited to:

  • Credit and financial risks, such as customer payment defaults or bankruptcy.
  • Fluctuations or sudden increases in transport and insurance costs due to external factors.
  • Unexpected changes in import taxes and duties.
  • Currency exchange risks, depending on the stability of the local currency.
  • Legal risks, covering areas like import procedures, taxation, employment laws, property rights, protection of intellectual property, and distribution agreements.
  • Shipping risks, including contamination, seizure, vandalism, theft, loss, and damage.

While these risks may seem daunting, many strategies exist to protect your company’s interests. It is essential to be aware of the various types of potential commercial risks and to understand the strategies that can help the company to protect its business against these risks.

Curious? Have a look at the Chase case; its Head of Export will share some of his experiences with you.

Share:
0