Exporting goods to other countries can be a source of significant growth for businesses in the form of new markets and opportunities. In the process, these businesses are likely to face new risks, especially when it comes to managing payments, that they may not have encountered or experienced before.
Not all of these risks will have the same significance. Some payment risks can lead to unexpected levels of that have devastating consequences for a business. Other situations involve risks that only lead to short-term concerns, such as sporadic .
Unfortunately, it is not always immediately clear which risks can lead to which set of consequences. Therefore, managing an export business begins with a clear recognition and understanding of all of the risks that business faces and the level of those risks.
With that insight, companies will be able to monitor and manage those risks as needed. It is when companies do not understand or recognize the inherent risks of export businesses that real problems occur. Looking the other way and hoping for the best is not a viable export risk management strategy.
Risks that catch business leaders by surprise can be particularly devastating to business performance and profitability. To avoid this, companies can leverage a range of tools and solutions to , export business, credit insurance, and stricter payment terms for higher risk customers. Learn about involved in exporting and how to manage them.