Report On Export Risk Management Of HA Company

With rapid growth of China’s economy, the technical level of China’s manufacturing industry has been improving continuously during recent years. Manufacturing industry has developed so fast that a large number of Chinese-made products have been exported to overseas. Especially after the accession to the WTO, foreign trade continues to expand and China’s manufacturing industry becomes more and more important to the world. However, the huge trade surplus in trade between China and other countries, the big risk of China’s export industry faces in the international market.How to prevent risk before risk comes, how to detect risk when risk appears, and how to overcome risk after risk emerged? Risk management is now playing an important role in risk prevention and has been widely used by the enterprises around the world. As for China’s export enterprises, how to apply risk management well to compete in the international market by obtaining maximum protection with minimal cost is becoming the core work of these companies.The company HA is set as an example in this paper. Combined with author’s experience in the field of international trade, this paper has summarized risks faced as well as lessons learnt by HA during its business development. It analyses from macro and micro aspects to track the cause and manifestations of the risks. It also proposes strategy and solution to prevent the risks.This paper has conducted a detailed study of the fundamental theories of risk management, and used the application of AHP(Analytic Hierarchy Process) to perform analysis on risk indicators, and discuss the means of risk management. It also assesses and analyzes the common risks in international trade. At the end, based on the risk management at the company level, it proposes to set up a risk management department, decision-making and cycling systems, and build up and improve the early warning system inside the internal control frame of the company. This paper has provided ideas for HA and other similar small to medium sized export companies a viable organizational structural model of risk management.