Mitigating Techniques for Commercial Risk/Summary: Difference between revisions
wikademia>MSUglobal New page: {{TF3.5}} ==Summary== There are four types of risk responses a seller can take regarding nonpayment by the buyer: *Avoidance: Don’t sell on credit. *Transference: Ask a third party to ... |
wikademia>Dr. Eme m moved Archive:Mitigating Techniques for Commercial Risk/Summary to Mitigating Techniques for Commercial Risk/Summary over redirect |
||
| (6 intermediate revisions by 2 users not shown) | |||
| Line 1: | Line 1: | ||
{{ | {{ntnes}} | ||
There are four types of risk responses a seller can take regarding nonpayment by the buyer: | There are four types of risk responses a seller can take regarding nonpayment by the buyer: | ||
*Avoidance: Don’t sell on credit. | *Avoidance: Don’t sell on credit. | ||
| Line 10: | Line 8: | ||
<div style="float:right;">[[Mitigating Techniques for Commercial Risk/Credit Insurance-Mitigation|Prev]] | [[Mitigating Techniques for Commercial Risk/Resources|Next]] | |||
[[Category:International | [[Category:International business]] | ||
Latest revision as of 19:27, 12 August 2009
There are four types of risk responses a seller can take regarding nonpayment by the buyer:
- Avoidance: Don’t sell on credit.
- Transference: Ask a third party to assume the risk, such as the buyer’s bank.
- Mitigation: Take precautions that reduce the probability that nonpayment will occur, such as performing a complete credit check.
- Acceptance: Establish a contingency allowance for nonpayment accounts.
A credit manager can choose one or more of the techniques discussed in this lesson as a means of managing the risk of nonpayment.