“Here’s a start for your horror movie,” Roger Cunningham, president and owner of United Risk Consultants tells me as we begin to talk about political risks for exporters in North Texas. He tells me that we are seeing ”unprecedented” worldwide insolvencies in 2009 that are continuing into 2010. This means that companies are in a lot of financial trouble.
Some may ask, ‘how does this impact me? I have great relationships with my buyers.” Contracts signed three years ago under the best of intentions are now facing extraordinary uncertainties. Buyers are unable to follow through.
Are you doing business with Greece, Iceland, Ireland, Italy, Portugal or Spain? Many executives are beginning to worry about the enormous debts of these and other governments around the world. Will they be able to support their own obligations, much less support their business communities in a time of need?
“Political Risk includes military wars, but in my experience, many people don’t think about trade wars which happen much more often,” Roger tells me. “The cancellation of an import or an export permit can certainly stop payment on an order; not to mention any and all future orders.”
An example is the provision in the Stimulus Act of 2009 that prohibits Canadian, and other foreign-owned businesses, from competing for U.S. government projects. It also prohibits U.S. companies that source a percentage of their products from foreign-owned companies. Buying Canadian lumber? Chinese steel? You are likely out of the game for these procurement opportunities. Selling to these same companies? Many governments are retaliating, making it much less attractive for foreign-owned businesses to buy U.S.-made products.
Global Commerce can be a risky business if you’re not prepared and the Dallas Regional Chamber’s International Business Council wants to help you prepare. The fourth installment of the Navigating Global Risk Series will host a panel of experts to discuss ways to not be fooled this April fool’s day. “Insuring” You Get Paid in Global Commerce will be held Thursday, April 1, 2010.
The April 1 seminar focuses on banking, public and private sector insurance tools for risk management and discusses building these tools into an international sales contract. Confirmed panelists include Roger Cunningham, president and owner of United Risk Consultants and Kelly Kemp, business development officer at the Export-Import Bank of the United States. Other speakers will represent legal, corporate experience and the banking sector.
CPE- Accounting and MCLE (pending) continuing education credits are available for this course, with no course prerequisites.
The April 1 event will be held at the Westin Galleria Dallas. Prices for each seminar are $45 for Chamber members and $55 general admission. International Business Council members receive an additional discount.
Visit www.dallaschamber.org/global for more information or contact Kelle Marsalis at (214) 712-1901 or kmarsalis@dallaschamber.org to register.
