Ten Critical Steps for Risk Managers ( on political risk in the import/export industry) - Research Paper Example

In other words, the country learned the art of providing the appropriate investment climate for its investors to ensure sustainability. For this country, putting diplomacy into action is a guarantee to produce a harmonious working relationship with its future and existing investors. In fact, the US is particular with its import and export policies with its investors to make sure investment climate is of its significant condition (US Department of State, 2011). For this reason, the country has gained a remarkable trademark as one important place that could help boost one’s business and hold a top competitive position around the world.

However, even if there is a strong point to consider that the US may provide a good venue for business and investment, an investor may not still be immune against possible political risk exposures. Application of 10 critical steps for risk managers To prevent losses in the US, a manager must be able to implement the 10 critical steps for risk managers, which involve selecting a broker/underwriter; service requirements; combining risks; communication; contact review; political risk intelligence; rates, terms and conditions; export credit; loss control; and claims procedures.

All these steps have substantial impact in order to implement a smooth-flowing export/import activity in the US. However, the associated success of the application of these in the trade industry relies on how the stakeholder like the manager would have to implement them. It is obvious that these steps would require a manager with substantial technical expertise in the trade industry. Considering the point that the US is always looking forward to achieve competitive advantage, the managers employing the 10 critical steps for risk managers must be able to integrate competitive strategies on how to implement them.

Managers therefore must be able to initiate actions that are a cut above the other, which would mean achievement of success heading forward on to competitive advantage. In addition, since the 10 critical steps are highly technical in nature, managers must be able to align them with the US prevailing policies and laws in line with successful emancipation of trade within and outside of its boundary. Doing this at some point would pave the way for the creation of systematic development for the appropriate implementation of the steps necessary to make sure of the achievement of successful trading activities.

Recommendation Since the US and its politics has strong implication with its economy, and since it widely exposes itself under political pressures from time to time, political risk intelligence is perhaps one of the most primary and essential step that a risk manager must give important focus for development. Doing this step would not only keep a risk manager updated with economic background and information of the country, but also with its prevailing social and political events, which are vital sources of essential ideas and actions to take prior to the achievement of a successful trade.

Thus, combining risks might be another essential great step that a risk manager must implement prior to actual import/export with the US. Doing