Risk management during the enterprise's export operations

Abstract

In the context of economic globalization and the deepening of China’s "Belt and Road" initiative, the export-oriented development of agricultural enterprises has become an important driving force for rural revitalization and agricultural internationalization. The seed industry, as the "chip" of modern agriculture and a strategic sector related to national food security and biological safety, has gradually expanded its global market share with policy support and technological progress. According to data from the Ministry of Agriculture and Rural Affairs of the People’s Republic of China, China’s seed export volume has maintained an 8.3% annual growth rate over the past five years, covering more than 120 countries and regions worldwide. According to statistics from the General Administration of Customs, 12.7% of China’s exported seeds were rejected or returned by importing countries due to the detection of harmful organisms such as wheat smut and corn borer in 2022, resulting in direct economic losses of over 300 million yuan for related enterprises. Against this background Chinese seed export enterprises, is facing an urgent need to solve the problem of how to identify, assess, and control export risks effectively. The aim of the research: The overall aim of this research is to systematically analyze the types, causes, and influencing factors of the export risks faced by Henan Tiancun Seed Industry Technology Co., Ltd., construct a targeted risk management system, and propose practical risk prevention and control strategies. The object of the research: The research object of this paper is the export risk management activities of Henan Tiancun Seed Industry Technology Co., Ltd. The subject of the research: The research subject of this paper is the mechanism, evaluation, and optimization strategy of export risk management for Chinese seed enterprises, taking Tiancun Seed Industry as a case study. The research shows that Tiancun Seed Industry is confronted with five dimensions of risks in its export business: policy and regulatory risks, biological safety and quality risks, intellectual property and core resource risks, supply chain and market volatility risks, and financial risks. Among them, biological safety and quality risks (weight 0.32) and policy and regulatory risks (weight 0.28) are the core risks, with an overall high risk level (weighted score 7.32/10). Currently, the enterprise's risk management has problems such as outdated organizational system, unscientific identification and early warning mechanisms, incomplete risk control system, and insufficient risk transfer and response capabilities. The root causes lie in the weak risk awareness of the management, lack of professional talents, and insufficient resource investment. Accordingly, this paper puts forward targeted optimization strategies from five aspects: improving the risk management organizational system, optimizing the risk identification and early warning mechanism, strengthening full-chain risk control, enhancing intellectual property and compliance capabilities, and optimizing financial and supply chain risk management.