ART OF RISK MANAGEMENT UNDER TODAY'S AND FUTURE GLOBALTRADE SYSTEM

Abstract

The objective of this academic article is to study the art of risk management within the context of the new global trade order, through a descriptive analysis of documents related to risk, management, and the dynamics of global trade. The findings reveal that global trade is shifting from a free-trade system to a reciprocal trade model. One approach for countries to export goods to international markets is to integrate risk management into every step of strategic planning, which should not be carried out separately by public and private organizations. This is because today’s world is filled with uncertainty and rapid changes. Traditional approaches to risk management such as strategies of avoidance, reduction, sharing, or acceptance are no longer sufficient and cannot effectively fulfill their role. Importantly, organizational leaders must possess the art of risk management, combining in-depth knowledge of risk management with skills in human capital management and the ability to foster collaboration both within and outside the organization. They must also understand the interconnected economic and social networks and develop flexible, adaptive, and forward-looking strategies to respond to unforeseen events that may emerge, such as new technologies, global market volatility, foreign policies, international trade tariffs, or severe disasters. Risk management is not only essential for private businesses engaged in exports but also for every organization and government, which must adopt proactive planning to mitigate economic and social impacts, whether dealing with global recessions, pandemics, or natural disasters.Additional recommendations are that government agencies must change their roles from "regulators" to "supporters", to help the private sector produce quality products and meet international standards, emphasizing advice and creating an environment conducive to business development, along with protecting public interests, along with creating a transparent, auditable, and good governance system within the bureaucracy is essential to enhance credibility in the global trade arena.