I want to include examples of tools that organizations can use to manage risk but just don't know how to get started.
RISKS FACING ORGANIZATIONS IN INTERNATIONAL FINANCIAL ACTIVITIES
· 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
· 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 ...