Residual risks Assessment & it’s effects on Business
What is Residual risks Assessment?
Overview
International Commerce depends on exporters, traders, international banks & other organization. That transit in international market having a big challenging by some unexpected or expected notices. Which are rise by economic, religious, political, statutory challenging able to reflect business. A bigger challenge against business that government policy like anti dumping duties, taxes & levies. That can bump the business path dramatically down the sale growth of drastically down the business ration.
Recently some counties governments had imposed duties on imports some harmonized material that much reflected small scale industries get core to shutdown. Taxes & duties make a material very costly against estimated or quoted prices are losses can bear by industries. That the effects can be negative on business exports as result international business channel can be break.
What can be government policy base risk?
Some government policy that intense not to contrary local or international business. But some factors are that making a risk due to political instability that government makes a policy to concern. In some cases government thought to motivate business that can generate unemployment or directly or indirectly provides benefits to society or generate government revenue. That might be a risk as anti globalization movement directly or indirectly affect business.
Currency in convertibility, regulations changes are major risk that making a political instability creating different risks that are not affect directly to assets of the business owners. But the fluctuation of the market can reflecting interest rates, currency value drastically down as result business directly affecting. If any business having importing material as same orders are booked before the unstable of currency that losses of currency conversion. Stock market also makes big challenges to business growth & whole economy system or particular industry which is importing material & exports after process on material.