by Dheeraj Tagra
05-January-2019 | 4 mins read
‘More risk, more profit’… one may agree or disagree on this concept but this is a well-accepted fact that risks or challenges are growing day by day, especially in export business which has involvement of different countries and many complicated issues. Focusing on this, Buying Agents Association (BAA) recently held its summit on ‘Experts discuss ways to mitigate business risks’. Various experts shared their expertise during the summit. Apparel Resources picked some of the suggestions regarding controllable or uncontrollable, known or unknown risks…
Export Logistics Risk: R Radhakrishnan, Chairman, Clearship Group
First, one should look at logistics as a whole as it is beyond transportation and covers designing, procurement, inventory management, warehousing, transportation and distribution of merchandise on time… Selection of right logistic vendor (based on points like capacity, expertise, infrastructure – especially regarding particular port, cargo handling, documentation, regulations and maximum use of IT…) is one of the most important factors that minimise the risks as far as export logistic is concerned. One must have an expert in his/her organisation for international logistics.
Insurance Risks & Management: Aman Dhall, Head Corporate Communication, Policy Bazaar
Majority of businessmen give only two hours, on average, in a year for their business insurance related research or decisions. Most of them do not own adequate insurance cover for business and personal… be it health or life insurance as the focus is to buy an investment-linked or tax saving insurance product not insurance specific. Despite complexities in insurance policies and allied things, own extensive research by individuals is a must. There are customised policies too as per the requirement of a particular business or organisation. One has to accept that insurance is not an additional cost.
Cyber Risk Management: Anuj Tewari, Yes Bank
One should not take chance on anti-virus as a good anti-virus is a must. Password management should be of top priority and one should use the passphrase for safety. Be cautious when any email says to click on any link or attachment. We make habit of using virtual keyboard during financial transactions.
Export Credit Risk: Sristiraj Ambastha, Regional Manager, Northern Region, ECGC Ltd.
There are a lot of options with ECGC (country, buyer or particular shipment wise). ECGC’s extensive database of buyers and regular updates about buyers’ financial conditions save exporters from the risk regarding export credit. To mitigate the risk regarding export credit, exporters must take services of ECGC.
Product Integrity, Safety & Regulatory Compliance: Dr. MVS Rao, VP Southeast Asia, Modern Testing Services
In EU, India’s some products are on the third number as far as products recall is concerned. In the US and Canada, recall of soft goods is increasing. So, don’t see third party tests as a hindrance and don’t think that any fault will not be found in the random pickup. Any risk with quality and compliance is most harmful as EU and US are continuously increasing the parameters/standards for safeguarding their consumer protection. There is a strong need to bring changes to such a mindset.
Forex Risk Management: Swati Dakalia, Senior President, Yes Bank
The foreign exchange chaos presents a winning opportunity, even high-speed change presents the same. One has to demystify the myth that he/she believes in hedging but waiting for correct level… Hedging itself kills all speculation. Proper hedging will help to protect your accounting profit.