Avoiding the risk of defaults by counterparties in volatile regions is vital. Henri d’Ambrieres, senior technical adviser at the ICC Banking commission, describes for The Asset how companies across Asia can take steps to do so.
The ICC banking commission’s latest Trade Register Report shows few defaults globally in trade and export, giving it a very low risk profile. Nevertheless, some regions have shown increases in default rates due to the impact of sanctions.
Global trade is the backbone to the global economy. For international companies, trading with other countries is not an option. But how you choose your trading partners, where they are based, and how you spread risk are in your control. And reducing the risk of overall defaults when partnering with riskier countries is possible.
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