How can you navigate unexpected events in global trade?

2 Mitigate your risks

Once you have assessed your risks, you need to take actions to mitigate them or reduce their probability or severity. For example, you can diversify your sources of supply or demand, negotiate flexible contract terms, hedge your currency exposure, secure insurance coverage, comply with trade regulations, or implement quality controls. You can also seek professional advice from trade associations, consultants, lawyers, or government agencies to help you navigate the complex and dynamic global trade environment.

3 Monitor your environment

Even if you have mitigated your risks, you still need to monitor your environment for any changes or signals that could indicate a potential disruption. You can use sources such as news, reports, databases, alerts, or networks to stay informed and updated on the political, economic, social, technological, legal, and environmental factors that affect your import/export operations. You can also communicate regularly with your suppliers, buyers, agents, or partners to exchange information and feedback.

4 Respond to disruptions

If a disruption occurs, you need to respond quickly and effectively to minimize its impact on your business. You can use a crisis management plan that outlines the roles, responsibilities, actions, and resources needed to deal with the situation. You can also activate your contingency plans that provide alternative solutions or options to cope with the disruption. For example, you can switch to another supplier, buyer, mode of transport, route, or market. You can also communicate clearly and transparently with your stakeholders to inform them of the situation and your actions.

5 Recover from disruptions

After the disruption is over, you need to recover from its effects and resume your normal import/export operations. You can use a recovery plan that defines the steps, timelines, and indicators to restore your business performance and operations. You can also evaluate the lessons learned from the disruption and identify the gaps, weaknesses, or opportunities for improvement in your risk management strategy. You can then update your risk assessment, mitigation, monitoring, and response plans accordingly.

6 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?