Concept of Risk Management
Growing your client base to the United States is an exciting and potentially lucrative opportunity, but with increased growth comes increased risk.
Some of the issues faced by exporters:
- Transporting and delivering goods
- Currency fluctuations
- Language barriers
- Different business regulations
- Political and economic instability in dealing with unknown customers
- Debt defaults
This should not deter Malaysian businesses from capitalising on the US marketplace as long as these risks are managed and minimised.
The first step in risk mitigation is to get to know your target market and customers. Exporters can access general information on political, legal and regulatory conditions from local trade facilitation companies.
In addition, these companies can introduce you to potential business partners and local professional services so you can explore the competitive market before making any commitment to that country.
Types of Risk as per follows:
- Business Credit Risk
- Bank Risk
- Country Risk
- Supplier Risk
- Business Risk
To better manage your export risk, please contact us at Wexpot. (www.wexpot.com)
