Do you want to go bungee jumping?
Perhaps this seems like a strange question, but stay with me. Are people who bungee jump crazy? Or are they just having fun and seeking an adrenaline rush?
No matter your opinion, the point is that bungee jumpers have assessed the risk and determined that it is acceptable.
Now, imagine you’re given a chance to bungee jump over a lake filled with alligators. Would you still do it? Depending on your personality, you may take the risk. You may think bungee jumping over alligator-infested waters is minimally risky compared to the thrill the extreme sport provides.
Imagine still that you find out prior to your jump that the equipment used isn’t well maintained—the harness is in disrepair, and the bungee cord is too long. Would you still choose to go? In this case, probably not, because the facts you've gathered lead you to believe that the risk of death in bungee jumping far outweighs the temporary thrill.
In my first two examples, there is no wrong answer—they are just different ways people assess risk. In the third scenario, however, I think most people would say it's unnecessarily risky to jump.
How Much Export Risk Will You Accept?
Risk is an inherent part of everyday life, be it private, social or business. Risk is unavoidable, and if you do not manage it, it will manage you. For exporters, this is especially crucial.
While you can’t eliminate the possibility of something going wrong in an export, there are specific steps you can take to identify potential risks, analyze and evaluate them, and take the proper precautions. In our free white paper, Evaluating Export Markets: How to Assess Country and Customer Risks, we discuss seven steps for evaluating risk in detail. You’ll learn how to:
- Measure country risk.
- Identify bribery and corruption risks.
- Measure business regulations.
- Review fairness of trade.
- Understand and manage bank risk.
- Use industry and government resources.
- Understand regulations and documentation requirements.
By assessing country and customer risks first, you can avoid dealing with unsavory characters—and potentially losing a lot of money. Find out more by downloading the white paper below!
This article was first published in August 2018 and has been updated to include current information, links and formatting.