Market Waves In Asia Will Lead to Wipeouts

With many of Asia’s biggest markets in turmoil and global growth slowing, it is reasonable to expect that there will be unexpected business failures in Asia. Fraud and corruption will be brought to light as perpetrators are unable to keep their balance. Once decent if marginal customers will disappear, and there will be defaults on debts and obligations.

There is no doubt that the tremendous challenges faced by the global trade regime in this period of slowing global growth is making it tougher to ride the waves without falling off the board.

Now is a good time to challenge your existing book of business, and to carefully examine the root causes of any failures or surprising results.

1) Do you have a detailed list of your trade counterparties and debtors? How updated are your files? If there was a dispute or default, what assets would you be able to attach?

2) Are there indicators of fraud or corruption amidst this market turmoil? Are unusual excuses or explanations being offered for a funky result?