Interconnected export risks: A holistic look

At a time when nearly every business, regardless of size, is a global business, exporting can seem like a natural step toward opening new markets and increasing revenue. However, exporting also adds some new risks to a business’ operations, and places increased importance on the need for a holistic view of risks.

A new Bloomberg Audience Insights report, conducted on behalf of Zurich Insurance Group, underlines this fact. At least half of senior business decision makers (SBDMs) at small and medium-size enterprises (SMEs) and mid-market businesses (MMs) worldwide reported that their overseas sales have been hampered in the past 12 months by challenges that include unfavorable exchange rates (64 percent for SMEs, 59 percent for MMs), high tariffs (63 percent, 62 percent), customs procedures (61 percent, 59 percent) and supply chain reliability (61 percent, 53 percent). To consider these risks individually, however, is a strategic misstep.

“It’s important for every business to spend time trying to understand the interconnectivity of risk and how one thing can lead to problems in other areas,” says Linda Conrad, Director of Strategic Risk Management of Global Corporate, Zurich Insurance Group.