What do you think is the most important aspect of international risk management for a manager? Why?

 What do you think is the most important aspect of international risk management for a manager? Why?

Every international transaction and business has its own inherent risks such as political risk, non-payment from foreign buyers, non-delivery from foreign suppliers, or foreign exchange risk. I think there is no such thing that one risk is far more important than others. Like a human body, the heart and brain are important. But can you say that liver, kidney, and pancreas are not so important? They may not instantly cause death, but they take your life bit by bit if they are losing their functions. For many people, it far more painful than death. However, I think the most important aspect of international risk management for a manager is to understand the priority and processing them correctly. If you keep the heart beats regularly, you will have time to fix other diseases. 

Various Aspects of Risk Management

Risk management refers to the identification, assessment, planning, and controlling threats from factors such as social, economic, or natural disasters to the organization. However, the truth is the process of risk management is not only restricted to controlling the threats or reducing their negative effects. And, even though we have a systematic approach to treat risk, it is not absolutely going to help. Therefore, simply designing and implementing a risk management plan is not enough to treat risk. 

Risk management varies from firm to firm and industry to industry and testing companies' ability to develop and implement a risk management plan effectively. So, do business owners actually need a plan? I think it needs a thorough examination such as how are situations before you make any decision. After you made a plan, that follows a second question. Is the plan feasible? As we learned from "How to set a SMART goal", your goal or plan must be feasible not just a new film like Mission Impossible.

Conduct a SWOT analysis can help you find out the strengths and weaknesses of your plan. And also, it should meet your company’s major objectives. In addition, examine if you can avoid the risk or not. Finally, you need to check if your risk management plan has been backed by clearly defined activities or not.

Reference

MSG Management Study Guide. SWOT Analysis - Definition, Advantages and Limitations. (n.d.). https://www.managementstudyguide.com/swot-analysis.htm. 

MSG Management Study Guide. Various Aspects of Risk Management. (n.d.). https://www.managementstudyguide.com/risk-management-aspects.htm.