Localized insurance restrictions
Scope of geographic, political, and economic factors
that influence the risks
Less control over communication channels and infor-
mation gathering to make the most effective risk man-
agement decisions
Risk managers must ensure that the brokers and under-
writers they engage meet the following criteria in regard to
overseas exposures:
Have the necessary expertise in risks in the appropriate
geographic areas.
Have a local presence in the countries of global sourcing.
Can manage insurance programs on a global scale.
Have access to legal capabilities in those foreign coun-
tries in which the supply chains operate.
Have quality personnel in brokerage, underwriting,
claims, loss control, and customer service throughout
the network of countries involved.
Have financial stability in the world market.
Professional risk managers have as one of their primary
purchasing responsibilities finding companies with the
appropriate expertise and protecting the interests of the
company’s global supply chain as they would the domestic
operation.
Specific exposures that must be addressed are described
in the following sections.
Personnel
Companies engaged in purchasing goods from overseas
and developing foreign manufacturing send personnel on
international business trips. Some of these trips are short
term, others prolonged. Many companies place executives in
the foreign markets to lend manufacturing and production
140 GLOBAL SOURCING LOGISTICS

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