Thai Nguyen University International school In depth interview questionnaire I/ Information Interviewer Nguyen Thi Nguyet Minh – Class IBK8 Interviewee Sagar Shinde Date of birth 1966 Sex Male Academi[.]
Thai Nguyen University International school In-depth interview questionnaire I/ Information: Interviewer: Nguyen Thi Nguyet Minh – Class: IBK8 Interviewee: Sagar Shinde Date of birth: 1966 Sex: Male Academic standard: Position: Superintendent Logistics Interview topic: Risks in international payments Location: At Nui Phao Mining Company Time: 2/11/2022 II/ Content: What you think about risks in international payments? Have you ever felt that you are at risk in any international payment? If so, talk about that risk To me, international payment risks are economic risks arising in the process of conducting international payment activities I have a prepayment problem That time the delivery supplier did not match the quality requirements and delivered late Which currency should you choose to avoid currency risks in the current exchange rate fluctuations? Why? When there are exchange rate swings, I believe that picking a settlement currency and a settlement currency in a different transaction offers a danger to the organization When the exchange rate varies, it is bad for our firm since we must purchase foreign currency to pay for high-priced imported items, yet the price of consumption or raw materials is determined by market supply and demand adjust for variations in currency rates The bounce has a significant financial impact on the organization What you think about the payment methods (Letter of Credit, Remittance, Documents against Payment)? Based on your position, how does this method affect credit risk in international payments? What are the risks of using this method? The remittance technique is the most risky of the methods you listed to me By paying in advance, we may more readily negotiate a discount with the supplier However, its downside is that after receiving the money, the provider may purposefully fail to deliver the items, deliver the goods late, fail to deliver the goods as promised, or even fail to deliver the goods at all That level declares bankruptcy Except for extended delivery times, postpaid payments provide essentially no significant hazards Prepaid or postpaid also relies on whether or not the supplier agrees The risk of L/C payment, I believe, is the safest payment method, and it is the most widely used in foreign payment methods However, there is a chance that the supplier will not deliver the products and that the documentation will be tampered with The provider supplies the goods but fails to deliver the items or fails to deliver the goods in the agreed-upon quality Finally, regarding Documents against Payment, it is absolutely conceivable that the products have not been examined, are not yet insured, are of low quality, or are not in conformity with the contract owing to the inability to inspect the items prior to paying or accepting payment Furthermore, because the bank is not responsible for verifying the authenticity of the papers, it is perfectly conceivable that there is a case of document forgery, mistake, or purposeful commercial fraud At NPMC, have you met or know someone who meets and handles country risk in international payments? You can say clearly As far as I understand, country risk can come from mainly political and economic factors This risk affects our company as politics, war lead to embargo between major countries For example, currently the US embargoes China, when I pay in CNY through a US bank, it will be withheld Although it will still be returned, it will have to wait until the embargo expires But usually I will be notified in advance which banks are under embargo to avoid unwanted risks Regarding legal issues when making payment, what are the risks in your opinion? Legal risk occurs in the event of a dispute or lawsuit between the parties involved in the payment Because the legal and regulatory environments of the parties are different, legal risks are inevitable Therefore, the company has established a legal department to thoroughly understand the laws and regulations of the business partner's country in order to be able to well prevent this type of risk Of the four risks mentioned above, which one you think leads to the greatest financial impact? Please arrange the risks based on the criteria of financial impact in order from large to small For me, out of the four types of risks mentioned above, in my opinion, currency risk has the biggest financial impact Order of influence: currency risk - documentary credit risk - country risk - regulatory risk Can you give some solutions of your own to help the company reduce the above risks? We cannot significantly minimize currency risk since exchange rate changes are influenced by global political and economic conditions To avoid overpayments, I can only foresee volatility and set a suitable budget Risks in payment methods necessitate a thorough understanding of the client, including financial capacity, history of production and business operations, import and export area, and consultation with the bank about the customer's business process It is critical to have partners in order to reduce risk In terms of country risk or legal risk, proactively study about import and export legal rules in important markets in order to devise appropriate countermeasures; should employ big reputed local banks to use international payment services