18 Aug 2015, 11:33 — 4 min read
Traders play a pivotal role in the economic value chain consisting of manufacturers, distributors, wholesalers, retailers and consumers. They command a floating position and easily blend anywhere in the value chain.
As major contributors to our nation’s exchequer, trading companies play a significant role in taking Indian goods and services to the world and vice versa. It is evident that their role in India’s development cannot be overlooked.
Be it international import-export or domestic transactions, traders have to be on their toes to ensure that they are hedging their risks well and delivering value to every stakeholder.
Change in Preferences
Technological advancements or change in consumer preferences can alter the business landscape. New entrants or the emergence of substitutes can have a detrimental effect on the demand of previously in-vogue goods. A change in market dynamics can leave a trader dumbfounded, while the stocksmay keeppiling up at thewarehouse.
Risks a trader must consider protecting against
Traders need to play safe and protect themselves against risks, which are an inherent part of their business. They may do so by seeking appropriate insurance covers.While risks such as change in preferences, policy changes, and price rise cannot be immediately protected against, those related to loss of goods in transit and manpower related issues could surely be covered.
Fire Insurance: Fire insurance protects your business from the damage caused by fire. This extremely useful policy safeguards you from financial losses because of damaged property and goods.
It is wise to protect ones business against unforeseen circumstances to ensure business continuity and to excel.
Posted byGlobalLinker Staff
We are a team of experienced industry professionals committed to sharing our knowledge and skills with small & medium enterprises.
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