Economic & Trade Risk Insights

In today's dynamic business environment, the risk of default is a significant concern for companies trading on open account terms. Late payments, missed invoices, and outright defaults can disrupt cash flow, strain supplier relationships, and threaten overall business stability. To safeguard operations, businesses must understand the nature of default risks and implement strategies to mitigate them effectively.

Learn about risk avoidance, a strategy to eliminate threats entirely. Explore its pros, cons, and how Allianz Trade supports businesses in managing risks effectively.

The cash ratio evaluates your ability to meet short-term obligations with cash using three main components—cash, cash equivalents, and current liabilities.