Jiangsu Dh Group Risk Prevention Studies Of Foreign Trade

In the past3decades since the reform and opening-up, especially after entering the WTO, China has developed repaidly in foreign trade. As an import and export trading power, Jiangsu Province is always in the forefront of the country in foreign trade, with import and export amounted465.7Billion US Dollars in2010, and import and export scales ranked the second among the country for8consecutive years, while the risk is relatively high. Tremendously striking changes have taken place in the international economic and political situation in recent years. A variety of challenges and difficulties increased significantly, especially after the financial crisis, the rapid deterioration of the external environment made foreign trade in our province confronted severe challenges. The foreign trade contracts fulfillment rate dropped significantly while the disputes increased sharply; so many small and medium-sized enterprises are on the verge of closure, and several large foreign trade groups also suffered heavy losses. It is necessary to strengthen the research on foreign trade risk prevention, promote the risk prevention awareness of foreign trade operator, improve the ability and skill on risk prevention, which brooks no delay.By means of basing on the theory of foreign trade risk management, taking Jiangsu DH Group as research target, and providing related cases, the author analyzed current situation of foreign trade risk and the main problems of this company. The suggestion was proposed, aiming at the internal management measures for DH Group foreign trade risk prevention. The author holds that DH Group should strengthen the construction of risk management system, in particular, the establishment of the legal risk prevention system, to strengthen risk prevention management on the contract risk, credit risk, and legal risk, and so on. At the same time, this paper argues that to deal with foreign trade risk, foreign trade enterprises can not only focus on prevention, but also take active measures to resolve it when the risk occurs, so that to reduce it to a minimum.