TYPES OF BUSINESS RISKS AND THEIR MANAGEMENT IN INTERNATIONAL SETTLEMENTS

Abstract

In the modern market, international payments are inevitable, but they pose significant risks due to different countries, cultures, views, and many other factors. The question arises of how to select the appropriate tools and methodology to manage the risk level within each company's context. In this article, using systematic scientific literature analysis and synthesis, as well as graphical analysis, the types of risks were examined from a theoretical perspective. The methods for determining payment risks were then analyzed, and ultimately the most effective payment method was identified. Additionally, the main types of international payment risks that businesses most commonly encounter were determined. Two types of risk management methods were identified: quantitative and qualitative. The primary international payment methods identified include payment orders, collection, and documentary credit, which is considered the safest payment method. The information was then systematized and summarized, and conclusions and recommendations were made for companies engaged in international trade. The study results revealed that there is no single universal methodology or rule that effectively reduces risk. The chosen risk management methods depend on the specific situation and circumstances. It is crucial to properly assess the current situation and select the most effective tools to ensure maximum security when carrying out international transactions.