
Risk assessment and risk management The cost of service: 3,5% of the customs value of goods
The company “Intermediario Global” assesses the risks of foreign trade operations and offers its clients various ways to effectively protect against risks: reserving, hedging, diversification, limitation, insurance, outsourcing.
Types of risks in an international trade project:
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Marketing risks
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Foreign exchange risks
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Production / commercial risks
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Credit risks, including the risk of non-payment
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International political risks
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International legal risks
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Force majeure
What is the reason for the risks?
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Goods: inability to produce the goods on time, their damage or loss;
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Price: currency fluctuations, unforeseen expenses on the terms of payment;
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Foreign partner: insolvency (de jure or de facto bankruptcy), as well as the risk of damaged business reputation of the partner (fraud);
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Documents: lack of certain permits for export / import or inaccuracies of the contract, which do not allow timely acceptance of goods and transfer of ownership;
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Country of supply: political risks and non-observance of creditors’ rights of, as well as force majeure circumstances (natural and man-made disasters);
Realization of risk can lead to:
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Direct damage
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Indirect losses
(!) However, indirect losses can be much more than direct damage.
When entering into negotiations with a foreign buyer and agreeing on the main terms of the export contract, the exporter is strongly recommended to:
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Carry out risk analysis and assessment;
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Calculate potential damage;
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Determine what level of damage your company is willing to accept in case of risk.