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How can Import/Export Operations managers improve their risk management skills?

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Risk management is a vital skill for import/export operations managers, as they deal with various uncertainties and challenges in the global trade environment. However, many managers lack the tools and techniques to assess and mitigate the risks effectively. In this article, we will explore some ways to improve your risk management skills and enhance your performance as an import/export operations manager.

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Nicolas Urien

Customs & Trade Compliance Management Expert I Partner at DOJ? Consulting Group ?? Podcast Host - Six Days In Suez

1 Identify the sources of risk

The first step to improve your risk management skills is to identify the sources of risk that affect your import/export operations. These may include political, economic, legal, social, environmental, technological, or operational factors. For example, you may face risks such as currency fluctuations, trade barriers, regulatory changes, security threats, natural disasters, or supply chain disruptions. You need to analyze the likelihood and impact of each risk and prioritize them accordingly.

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Nicolas Urien

Customs & Trade Compliance Management Expert I Partner at DOJ? Consulting Group ?? Podcast Host - Six Days In Suez
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The most important thing is to identify, but above all to prioritize each risk. Not every import/export risk has the same value. It is necessary to evaluate your primary risks (what can kill you) and secondary risks, based on their nature as well as the objectives of your business.

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2 Develop a risk management plan

The second step is to develop a risk management plan that outlines the strategies and actions to prevent, reduce, transfer, or accept the risks. You should also define the roles and responsibilities of your team members, the resources and tools needed, and the indicators and targets to measure the results. A risk management plan should be flexible and adaptable to the changing conditions and circumstances of your import/export operations.

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Nicolas Urien

Customs & Trade Compliance Management Expert I Partner at DOJ? Consulting Group ?? Podcast Host - Six Days In Suez
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Governance is essential in a risk management plan. Roles and responsibilities must be clearly established, even if it can be painful and cause profound transformations.

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3 Implement the risk management plan

The third step is to implement the risk management plan and monitor its progress and performance. You should communicate the plan clearly and consistently to your team members, stakeholders, and partners, and ensure that they understand and follow the procedures and policies. You should also use various methods and tools to track and report the risk status, such as risk registers, dashboards, audits, or surveys. You should also review and update the plan regularly and address any issues or gaps.

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4 Learn from the risk events

The fourth step is to learn from the risk events and improve your risk management skills and practices. You should conduct a post-mortem analysis of the risk events that occurred and evaluate their causes, effects, and responses. You should also identify the lessons learned and best practices from the risk events and share them with your team members, stakeholders, and partners. You should also incorporate the feedback and suggestions into your risk management plan and processes.

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5 Enhance your risk culture

The fifth step is to enhance your risk culture and foster a positive attitude and behavior towards risk management. You should promote a culture of openness, transparency, collaboration, and accountability in your import/export operations. You should also encourage your team members to report and escalate the risks promptly and proactively, and reward them for their contributions and achievements. You should also seek opportunities to learn from other import/export operations managers and experts, and participate in training and development programs.

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Nicolas Urien

Customs & Trade Compliance Management Expert I Partner at DOJ? Consulting Group ?? Podcast Host - Six Days In Suez
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It is a central element where leadership plays an essential role. Implementing a risk management plan also means accepting risk-based management. This culture must be clearly communicated, deployed by top-management, and encouraged.

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6 Use technology and innovation

The sixth step is to use technology and innovation to support and improve your risk management skills and capabilities. You should leverage the power of digital tools and platforms, such as cloud computing, big data analytics, artificial intelligence, or blockchain, to enhance your risk identification, assessment, mitigation, and reporting. You should also explore new ways and solutions to overcome the challenges and seize the opportunities in your import/export operations.

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Blake Baron

Freight Customs Manager at Cardinal Health
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Considering incorporating third party Event data into your planning analytics. An example of this is to add in a layer of atmospheric weather data when creating lead time and supply plans. With such weather data, you can forecast the times of year when there are heightened risk to your operations.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can Import/Export Operations managers improve their risk management skills?

1

2

3

4

5

6

7

1 Identify the sources of risk

2 Develop a risk management plan

3 Implement the risk management plan

4 Learn from the risk events

5 Enhance your risk culture

6 Use technology and innovation

7 Here’s what else to consider

Import/Export Operations

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How can Import/Export Operations managers improve their risk management skills?

1

2

3

4

5

6

7

1 Identify the sources of risk

2 Develop a risk management plan

3 Implement the risk management plan

4 Learn from the risk events

5 Enhance your risk culture

6 Use technology and innovation

7 Here’s what else to consider

Import/Export Operations

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