How to Curb the Risk of Foreign Trade System
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The World Bank recently issued a "temporary trade barriers database" report shows the first quarter of 2010, the world, including the newly launched anti-dumping, countervailing and safeguard the temporary import restrictions, etc., trade remedy cases fell 20%, but 47 % of new cases and 82% of trade investigations of trade investigations have been completed, are targeted or involved in my country. This information is sufficient that the risk of import and export enterprises in China has entered the focus of the outbreak.
International and domestic trading environment despite drastic changes, so do not be brought against systemic risk it?
Absence of risk awareness
First half of 2009, AS company has ordered from Russia, 172.4 tons of rubber per ton of cargo valued at 96,000 yuan, on arrival in mid-September to catch up with the financial crisis is spreading to the corporate entity, Bohai Bay, Yangtze River Delta, Pearl River Delta processing trade enterprises in many sharp decline in overseas orders, rubber, steel and other bulk raw materials, lower demand, the price of the domestic market dropped to 2.3 yuan per ton, according to 25,000 yuan per ton if sold, plus transportation costs, sudden loss of more than 2000 enterprises million yuan.
Despite the end of 2008 rubber futures prices have fallen below million, but did not alert enough to cause AS to reduce the volume of trade, but invested a lot in order rubber. In addition, the transaction contract, not the risks of price changes has been agreed. Interweaving of multiple factors, led to disaster.
AS the absence of the company's risk awareness is reflected in three aspects: First, there is no established system of risk prevention awareness, the boss alone to judge a person's experience; and second, the potential risk of loss and trading partners to share; Finally, the lack export credit insurance and other risk transfer instruments and tools.
These problems can be avoided?
Financial crisis is not coming overnight, enterprises can establish their own early warning system to monitor these anomalies, such as the trading price anomalies, abnormal trading volume, trading volume and abnormal.
First, companies need to identify risks, present, many financial institutions, stress testing has been widely used approach to risk assessment and quantification of business risk. I think that, in fact, this method can also borrow foreign trade enterprises. For example, we can import and export business in the higher risk factor, assuming that some extreme abnormality occurs, the test in this environment, the enterprise systems will react to extreme situations the risk of loss to the enterprise is not can control the tolerance range. This risk is simple and practical method of stress testing, risk management, strong effect.
A risk warning system, the enterprise needs full participation, establish and improve risk reporting system, provides a good report writing and reporting path, so that monitoring of employees of different positions to the risk information, anytime, anywhere to pass unimpeded to the relevant person in charge in order to take timely preventive measures.
Internet and information technology, making import and export enterprises can build their own platform for risk control, AS companies can build their own risk monitoring network, once the supervision of the domestic rubber price fluctuations and abnormal, immediate risk to the police.
Similarly, foreign trade import and export enterprises, but also through the national customs authorities for import and export prices and quantities of the exact data from the official website of the government departments to obtain timely information on macroeconomic policies, or even to provide policy assistance from the embassies and trade data. Internet platform, risk control software can be integrated into the enterprise information technology platform to create a practical risk early warning system.
Practical risk management rules
Look at toy factory in Fujian Province, the tragedy of LD, which you can learn some practical principles of risk management.
LD toy factory in Fujian and the leading U.S. seller of Mattel toys, signed a cooperation agreement, Mattel toy factory responsible for production of the Fujian LD toy sales to the U.S. market.
However, during this period exceeded the lead in children's toys were recalled products, leading companies in China's direct economic loss of LD 3000 million U.S. dollars, so the boss committed suicide, the enterprise so into the abyss beyond redemption, but Mattel is intact. Also face a risk event, the fate of American companies are very different, and why?
Objectively speaking, the level of risk management of both companies significant differences exist. China's trade in the market process, only concerned with orders and revenue, while knowledge and ideas on risk prevention are unknown. The Western countries and means of risk management is already quite mature, enterprise risk control capability into the process already and standardized management of age.
There are several ways you can spread some of the foreseeable risks: trade both parties share the risk, insurance risk transfer tools, the use of forward contracts to hedge against risk and other risks. Those intensity, frequency of high risk, should take decisive measures to avoid, boldly give up this single business. |
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Author Resource:-
I am a editor, http://www.chinaqualitylighting.com provides valentine radar detector,prepaid cellular plans, welcome to visit!
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By :
Jessie Stone
Submitted
2010-09-30 15:31:40 |
Article From Article Mayhem
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