Risk Management And Control Of Import And Export Business

Along with expanding the economical scale and the influence of our country, Import and Export as one of most important parts of our economy development, will be involved by more and more companies. Now the import and export trading total is very huge, so it become more and more important that how to protect the goods and how to prevent the companies from losing money when facing accidents or disasters. Lots of our companies do not have enough experience to deal with this, and they usually ignore this kind of work or depend on overseas companies. But the risk still exists. Getting more experience and doing more research will help Chinese import and export companies do well with the risks.This article analyzes the risks as Economic Risk, Social Risk and Technical Risk. This article focuses on how to manage the risks when the import and export goods would face disasters and accidents and how to manage credit insurance. The clauses themselves are very difficult to understand, so I give you two complex examples. In those examples, all the goods met serious damage when accidents happened. Using the theory of project management, we analyze the problems and give you the instructions.Then I introduce you the unfamiliar export trading credit insurance. When sending goods to oversea places, a company may have nothing know about the place and hard to know, and it may face all kinds of problems. Such as, the buyer does not accept the goods, or he does not pay, or even it does not exist anymore. Such as, the place explores a war, or the government comes to disturb the business. In these situations, internal companies cannot avoid the risks by using L/C. So they need credit insurance to protect themselves from all these risks. Using SWOT methods, we analyze the principles of the two methods of L/C and export trading credit insurance.Finally, I conclude the methods to manage the risks.