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Curtis, it is important to note that because of the international scope
of the Internet, nearly all businesses who operate on the Internet have
international risk exposures. As well, there is an inherent financial
loss component within all international business risks that turn into
actual losses. The financial loss component will be present when we are
discussing loss scenario along the strategic/operational/technical risk
spectrum.
Now let me answer your question the way I think I hear it.
International e-business operations run particular risk to incur direct
financial loss in the two common areas of fraud and regulation. As
imminent exposures that all businesses have to contend with, the
international scope for fraud and regulation are significant potential
drains on a new venture's financial resources. Both exposures stem from
the same problem in that it is very difficult to know just what you are
getting yourself into and whom you are dealing with when you explore
commercial opportunities outside the relative security of your home
country.
According to the various political, social and legal environments among
which your international transactions must originate and travel, having
a good working knowledge and achieving maximum strategic preparation
prior to going live is critical. In the best case you would have set up
competent legal relationships with those who understand the laws and
regulations and who might intervene on your behalf in the potentially
unfriendly socio-political economic playing field. Insurance is another
key ingredient to manage international financial exposures. When
something goes wrong, it will be good to have a strong risk transfer
partner who understands the international variables and will not be
afraid to put their balance sheet behind you.
Operational procedures is where the risk manifests itself within any
e-business environment. In the non-perfect world of the business where
everything runs at Internet speed, change is constant. Your ability to
manage that change will determine your failure or success. When it
comes to managing change within the actual business operations, senior
management should employ a great deal of systematic due diligence to
proactively manage the fraud and regulation exposures.
I hope this helps Curtis. Please let me know if I can be of further
assistance as you go down your international path.
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