The risks that exist in international trade can be divided into two major groups:
Economic risks
- Risk of insolvency of the buyer,
- Risk of protracted default – the failure of the buyer to pay the amount due within six months after the due date
- Risk of non-acceptance
- Surrendering economic sovereignty
Political risks
- Risk of cancellation or non-renewal of export or import licences
- War risks
- Risk of expropriation or confiscation of the importer’s company
- Risk of the imposition of an import ban after the shipment of the goods
- Transfer risk – imposition of exchange controls by the importer’s country or foreign currency shortages
- Surrendering political sovereignty
