Wars can lead to foreign exchange shortages, bans on foreign currency payments in countries, imposed restrictions (think Russia) and non-payments. A good risk inventory is therefore indispensable. Which customers in which countries do you do business with? What delivery and payment agreements do you make? Do you need insurance against non-payment, against country risks? Because even if a buyer is financially healthy, the money may not make it out of the country and you may not be able to receive payment. And what if a natural disaster occurs? A flood, an earthquake, a tidal wave?
Constant changes
In general, we can say that a good risk inventory is a first step. From there, you can start looking for solutions. In practice, it is often not easy to find out by yourself what coverage is available where political risks are concerned, as situations can change day by day and constantly. Therefore, it definitely pays to engage a trusted broker!
