Export Knowhow

Export risks: how can companies manage them?

Entrepreneurial activity always comes with a certain degree of risk. This applies at home and abroad and cannot be avoided a priori. What can a company do to minimize these risks?

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Evaluating possible risks and options for action

It makes sense for every exporting SME to deal with the various possible risks, assess them and develop options for action: Which risks are specifically relevant for us? What would be the consequences of their occurrence? How likely is their occurrence? What can we do in advance to manage the risks? If we can't avoid them: how do we deal with them?

Economic, political, legal and regulatory risks

Economic and political imponderabilities of particular relevance to SMEs (e.g. currency losses, customs and tax increases, corruption), imponderabilities relating to the market and customer base (e.g. reduced market proximity, changes in customer requirements, different payment behavior), legal and regulatory risks (e.g. product regulations and liability, marketing authorization, contract security) as well as losses by local agents (loyalty and management control).

Measures for avoiding risks

When dealing with risks, information, planning, flexible scope for action and minimizing possible losses are among the most important measures for exporting SMEs. It is worthwhile to obtain the necessary information regarding circumstances and processes at the beginning and to adapt accordingly.

Initial recommendations for action

  • Comprehensive information and sufficiently detailed planning of your project are important prerequisites for anticipating possible risks.
  • Talk to your insurance partners at an early stage, i.e. before entering the market, about possible solutions for protection against business, product and management liability on international terrain.

  • As a rule, it is worthwhile to professional support from internationally trusted local lawyers for the design of contractual relationships.

  • Relationships with business partners and major investments should in any case also include the consideration of an exit scenario: What do we do if things go wrong?

In addition to the risks, there are a variety of issues to consider. Our “Export Compact” handbook offers you a good overview of how best to prepare for internationalization.  «Export Compact» handbook!

Unterstützung im Export

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