International Business. Risk Management. Expatriate Advisory.

IBF Advisory llc

corporate risk services

Prudent risk management practices play a role in the achievement of company profitability and growth objectives. We provide risk review services to companies to strengthen their international risk management practices. We do this through comprehensive end-to-end reviews of the risk process including related documentation, and also perform checks for compliance with regulatory and institutional policy requirements.

 The complexities and risks of doing business with foreign partners, customers, and borrowers can be significant. International transactions present additional challenges such as country risk, foreign exchange risk, legal risk, reputational risk, and operational risk. All these must be incorporated into the risk management process, and limitations in information quality and frequency constantly kept in mind.

Accurate identification and mitigation of risks at the outset is critical, in order to ensure the selection of counterparties and borrowers with acceptable financial, reputational and risk profiles, and foreign countries with stable business and risk environments. Country risk can adversely impact  even the most viable counterparties and borrowers.

Regular and proactive monitoring of portfolio exposure and country risk trends is industry best practice. It facilitates timely detection of deterioration, diversification actions due to concentration risk, and compliance with regulatory and institutional limits. 

​

While still somewhat contained, there has been regional contagion and tensions from the war in the Middle East. The outlook is fluid and business dynamics can change suddenly. Exposure to businesses and counterparties in impacted countries should continue to be regularly reviewed and remedial action taken where necessary.

The previous IBF Advisory caution on the high risk associated with exposure to Russian and Ukrainian counterparties and business relationships remains in place. 

​Similarly, enhanced country and counterparty risk monitoring should be maintained given persistent economic difficulties resulting from the onging regional wars. Counterparty distress continues to manifest and investments may still be exposed to risk.

international risk MANAGEMENT