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Managing Risk in Exports and Imports

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International Trade Risks

While foreign trade offers opportunities, it also introduces challenges. Doing business internationally presents a wide range of risks to businesses, creating uncertainty over receipt of payments and delivery of goods and services between both exporters and importers.

Major international trade risks

Commercial - Failure to meet product quality and quantity expectations, insolvency or nonpayment. 

Compliance - Adherence to U.S. and foreign government trade agreements and Office of Foreign Assets Control (OFAC) restrictions for countries subject to trade and economic sanctions. 

Currency - Exposure to unanticipated changes in currency exchange rates, diminished access to currencies, and government actions that affect currency convertibility. 

Documentary - Discrepant documents or nonconformance with contract or agreement requirements, resulting in transaction failure or payment delays. 

Economic - Unfavorable economic conditions which may adversely impact a buyer’s ability to accept the goods—including lack of financing or insolvency—or a seller’s ability to deliver goods. 

Political - Complications due to political developments that may impact the transaction, including war, riots, terrorism and embargoes.

 

For more information including questions to ask a prospective bank and what you should expect your bank to provide, read Managing Risk in Exports and Imports here

KeyBank offers international trade services with a global network of over 1,200 foreign correspondent banking relationships and a dedicated team of professionals that provide client-driven, state-of-the-art products and services to help you compete globally. To learn more about how KeyBank can work for your company in the global marketplace, contact Yaminah Sattarian at yaminah_sattarian@keybank.com or 216-689-5562.

[1] Source: U.S. Department of Commerce, April 2016
[2] Source: U.S. Census Bureau, A Profile of U.S. Importing and Exporting Companies, December 2015

This document is designed to provide general information only and is not comprehensive nor is it legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. KeyBank does not make any warranties regarding the results obtained from the use of this information. Key.com is a federally registered service mark of KeyCorp. ©2016 KeyCorp. KeyBank is Member FDIC. E8647 160601-89282

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KeyBank Commercial Banking is focused on helping middle market businesses get the resources they need to succeed. Our relationship managers and industry experts understand the trends that drive the market, providing insights and advice to make managing a business in a complex and competitive environment easier to navigate. Our experience and expertise bring clarity to the issues that impact middle market business leaders, to help manage today’s challenges while planning for the future. KeyBank is Member FDIC.

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