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International trade has particular characteristics that give rise to different types of risks. The primary risks are:
- Product risks
- Manufacturing risks
- Transport risks
- Currency risks
- Country risk
- Corporate risk
- Commercial risk
- Fraud risk
- Documentary risk
Managing risk is a collaborative, cross-functional and big-picture effort. ISO’s five-step risk management process comprises the following and can be used by any type of entity:
- Identify the risks.
- Analyze the likelihood and impact of each one.
- Prioritize risks based on business objectives.
- Treat (or respond to) the risk conditions.
- Monitor results and adjust as necessary.