Assessing and managing risk is a crucial part of doing business in any market. When considering expanding to a new foreign market, identifying where your operation is exposed to risk is the first step in a risk assessment plan. International businesses must assess and mitigate risk as much as possible due to the removed nature of their foreign operations. There are five basic steps in our Risk Assessment package:
Our consultants will analyze every aspect of your foreign market operation to determine the risks that you would assume. This is a crucial step and requires a large amount of input from the client. Some of the questions that will be answered during this phase are:
• Will your operation be dealing with any hazardous materials? What kind and how?
• Will you be renting or owning real property?
• Will you be renting or owning industrial equipment?
• Will you be selling products for consumption by consumers?
• Are you transporting material from your local office to a foreign market?
After we have identified the risks, it then becomes necessary to prioritize them in order of both likelihood of incurring a loss and the estimated value of the loss should one occur. This phase allows us to recommend how you can manage the risk, whether it is through an insurance policy or some other means of loss prevention.
Once we have identified and prioritized the risks, it becomes necessary to develop a plan to prevent and reduce the risk of a potential loss, as well as a plan of action and mitigation strategy should a loss occur. Our consultants and network of industry advisors have years of experience in this area, and can help you to develop a thorough plan that includes multiple strategies at mitigating any kind of risk that your operation could experience.
Of course, a plan is just a plan unless it is executed. We will recommend a strong course of action that should be implemented throughout the organization. Our recommendations will most assuredly include a comprehensive insurance plan. While all organizations should have a general liability policy, there may be other kinds of policies that are particular to that specific type of business that may be recommended in addition to your general liability policy. As well, there are many other ways to reduce risks, such as having a well designed safety policy in place. Our consultants will go over the most applicable ways that you can reduce your exposure to a loss.
Finally, evaluation of the risk management plan, the progress of that plan, as well as any new risks that have been acquired by your operation will be done periodically to ensure that your operation is exposed to any uncovered risks. This should be done on a regular basis, and our consultants can manage this process on your behalf.
Vendor and Customer Credit Evaluations
If you’re concerned about extending credit to a customer or company, invest in a credit report facilitated by IAMG. A credit report will give you the information you need to make a decision about whether or not to extend credit. A credit report will include a customer’s historical payment data, bankruptcy records, any lawsuits, liens and court judgements against a company, and a risk rating that predicts how likely bill payment is – all the information you need to make an intelligent decision about whether or not to extend credit.
Using credit reports to do credit checks on customers can be a good investment both in terms of your finances and your peace of mind.