Page 60 - EBOOK RISK MANAGEMENT

12) Transit Risk

Transit risk is the risk of goods being damaged during shipment from the place of
origin to the place of destination. Failure in addressing transit risk may result in

heavy replacement cost or performance risk.

Potential Loss

 Loss of income
 Inability in obtaining payment for goods and services

 Business Failure

Risk Management Technique

 Make sure the credit terms of sales agreements are clear
 Use credit risk insurance

 Develop a standard process for handling overdue accounts
 Thoroughly check a new customers credit record

 Confirm a letter of credit to helps protect a seller against non-payment

from an overseas customer
 Offer foreign currency invoice to manage currency exchange risk

6.6 Online Fraud Risk

Potential Loss

 Property loss

Risk Management Technique

 Avoid doing online money transaction
 Make sure the visited websites are secure

 Do not expose personal detail specially related to bank card and
account in unsecured website

 Viral the issue to the public to increase their awareness towards the fraud

thus reduce the number of crime
 Check if the customer used an anonymous proxy server which enable

people to hide their real IP addresses

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