The recent surge of geopolitical events is a cause for concern given the globalized nature of FENC’s production and sales operation. Hence, the Accounting Department, Shipping Department as well as units under each Business teamed up to create the National Intelligence Sharing Platform, aiming to reduce geopolitical risks by creating a globalized intelligence network to monitor the political and economic conditions in each region. 

Meanwhile, to control export credit and compliance risks, changes in the sovereign credit rating as well as major political and economic events at FENC’s global locations are regarded as national risks and major credit risk factors. FENC monitors national risks on a regular basis and has response mechanisms in place for swift and timely action. Multiple risk assessments are conducted to determine the level of impact on the export business based on the  National Risk Monitoring Management and Crisis Intervention Operation Standards. Measures are implemented accordingly to balance sales performance and risk control while minimizing the impact of geopolitical risks.

International stability was rattled by the onslaught of major events in 2024, the Red Sea crisis triggered by the intensifying Israeli-Hamas conflict; a state of emergency caused by a gang-led jailbreak in Haiti; civil unrest in Bangladesh; the severe drought in Ecuador; the liberalization of foreign exchange controls in Argentina; the surprise decree of martial law in South Korea, which was rescinded within hours. These events sent tremors to areas where FENC’s customers and partners are located. FENC took swift action and activated the risk warning measures. When trade risks escalated during the Israeli-Hamas conflict, an emergency inter-departmental meeting was held immediately to identify risk exposure, determine responsibilities and formulate action plans. The risk control measures were adjusted as the crisis evolved, such as issuing national risk warnings, tightening credit control and coordinating shipping schedules.