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    Current risks facing organizations engaged in international finance activities

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    RISKS FACING ORGANIZATIONS IN INTERNATIONAL FINANCIAL ACTIVITIES
    Economic risks
    · Risk of insolvency of the buyer,
    · Risk of protracted default - the failure of the buyer to pay the amount due within six months after the due date, and
    · Risk of non-acceptance
    · Surrendering economic sovereignty
    Political risks
    · Risk of cancellation or non-renewal of export or import licences
    · War risks
    · Risk of expropriation or confiscation of the importer's company
    · Risk of the imposition of an import ban after the shipment of the goods
    · Transfer risk - imposition of exchange controls by the importer's country or foreign currency shortages
    · Surrendering political sovereignty

    Organizations engaged in international finance activities are tormented by a market based exchange rate will change whenever the value of either of the two component currencies ...

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