The 6 Risk Dimensions
Probability of non-payment or delayed payment. Influenced by payment terms, buyer creditworthiness, and jurisdiction enforcement mechanisms.
Exposure while goods are in transit. Depends on Incoterm, insurance coverage, shipping route, and cargo value relative to premium cost.
FX fluctuation exposure between contract date and payment date. Critical for long payment terms or volatile currency pairs.
Import licensing requirements, sanctions compliance, sudden tariff changes, and non-tariff barriers that could halt or delay your shipment.
Financial health and reliability of the other party. First-time buyer/seller relationships carry higher risk than established partnerships.
Political instability, natural disasters, port congestion, or logistical disruptions that could prevent contract performance.
Sample Risk Scorecard
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