Late or non-delivery of goods, foreign exchange and country risk offer new and unique challenges to the would-be international trader.

Despite such risks, and given the global choices available, the rewards of international business—and the imperatives of competition—are leading an increasing number of companies to explore and conquer foreign markets.

To deal successfully with risk, the importer or exporter must first understand the risk tolerance of their organization, and then determine the nature of the risk involved in a potential transaction. After doing a thorough assessment, the firm can develop measures to reduce, manage or optimize the risks identified. The following are the three most common types of risk encountered in international commerce:

1. Commercial risk
2. Country risk
3. Foreign exchange

Learn more about these 3 risks in this video excerpt from the online FITTskills International Trade Finance training course.

The post The 3 kinds of risk in international trade finance appeared first on Trade Ready.