Indo-Canada Chamber of Commerce (ICCC) in association with Export Development Canada (EDC) organized a session on Success Strategies for Global Business that included a workshop on risk and cash flow management. John M. McPherson, Senior Advisor, Trade Advisory Services, Export Development Canada, was the main presenter at the workshop.

John M. McPherson joined the EDC in 2005 and is currently Senior Advisor within EDC’s Trade Advisory Service group. In this role, he supports a team that focuses on delivering knowledge and advice regarding Global Trade and Supply Chain Management to both internal and external clients.  His primary focus is to understand the evolving business practices employed in global value chains that lower business risks, accelerates cash flow and leverages technology to create efficient, integrated trading relationships and opportunities.

Using a case-study approach, this workshop offered a guide to tools and solutions that small and medium-sized exporters could deploy to reduce risk and protect and accelerate cash flow. The session was interactive in nature and delivered to small groups in an informal setting. The workshop was targeted at ICCC’s SME members whose annual revenues are up to $25m, and who have recently been introduced to international trade. In addition, it was also open to businesses who wanted to enhance their knowledge to protect cash flow and reduce business risk in their supply chains, and for non-finance professionals.

The workshop illuminated the risk elements that can affect cash flow at all stages of an global transaction – in tendering, procurement, production, delivery, payment, post-sales service, trade compliance and logistics; reviewed commercially available risk management and financing solutions to enhance cash flow in each area; examined practical tools that enhance understanding and management of cash flow; reviewed the cash conversion cycle and an internationalized cash flow planning tool; and provided an opportunity to share experiences with peers and to hear the presenter’s experiences in both international procurement and export sales.

Speaking on the occasion, Brij K. Sharma, Director, Trade, SME & Sponsorship, ICCC, said that one of the key factors in an increasingly integrated market was the compulsion for small businesses to explore global markets. “While this has tremendous benefits, it also has major risks in terms of cash flow and risk management. A thorough understanding of these factors is necessary before any small business can venture into this unchartered territory.”