Risk Analysis and Mitigation Strategies in International Accounting

This report focuses on international accounting, specifically addressing risks faced by companies like Globe International. It covers various risks, including political, legal, and operational challenges, and proposes mitigation strategies. The report also explores the Australian government's support for exporters, including grants and schemes. It emphasizes the importance of risk assessment and management to minimize potential issues and maximize opportunities in international business. The study concludes that recognizing and addressing risks is crucial for successful overseas operations. This document is a student submission and is available on Desklib, a platform providing resources for students.

Title
International Accounting

Table Of Content
– Introduction
– Key risks
– Impact of risks & steps
– Key grants and support by Australian government
– Conclusion
– References

Introduction
The study discuss about major risks which Australian companies may face in
overseas operations. Further it covers discussion about how business affected by
such risks and steps to be undertaken to mitigate risks in context of Globe
international. Study also highlights significance grants and supports provided by
Australian government to promote export.

Key risks that Australian companies with
overseas operations are exposed to-
The contrast among successes and failures is being equipped while conducting business
internationally. There'll always be risks/threats when entering new industry, but recognizing
these risks in advance and implementing initiatives to handle those risks could help to minimize
their effect on success of overseas business operations.
– Political risks
– Legal risks
– Operating risks
– Currency risks

Continue

Impact of risks on Globe International
and steps to reduce risks.
Globe international company is Australia's leading footwear, clothing, and
skateboard hardware corporation and operating in different corporations. Company
is also directly and indirectly affects by described risks. Company's business,
specially supply chain is generally affected by political instability and political
actions. Further change in taxations, GST formalities and other rules and
regulations affects company's oversee business operations.

Continue (Steps to reduce risks)
Here are certain main steps needs to be taken to handle such risk:
 Develop a Alternative Plan(Plan-B) for supply chain
 Make effective assessment
 Developing risk management policies and strategies
 Take guidance and consultation

Key grants and support the Australian
Government offers to Australian companies
who export.
When a business have an effective plan, following are certain grants and support which are available to
Australian corporations who export, as follows:
– Export Market Development Grant
– Trade Start
– Export Finance and Insurance Corporation
– Tradex Scheme
– Wine Export Grants
– Export Accelerator

Conclusion
From above study this has been analysed that identification and assessment of risks
relating to overseas operations is essential to support the actions and measures
which are to be taken by companies. This will not only help to minimise such risks
but also to grab new opportunities.

References
Bui, B. and De Villiers, C., 2017. Business strategies and management accounting in response to climate change
risk exposure and regulatory uncertainty. The British Accounting Review, 49(1), pp.4-24.
Online:
Export Market Development Grants, 2020. [Online]. Available through:
<https://www.austrade.gov.au/Australian/Export/Export-Grants>
About TradeStart, 2020. [Online]. Available through:<https://www.austrade.gov.au/Australian/How-Austrade-
can-help/Trade-services/TradeStart>
Get Customs duty and GST exemptions, 2020. [Online]. Available through:
<https://www.business.gov.au/Grants-and-Programs/Tradex-Scheme>