Risk Management in International Trade: The Intermediary Role - A Case Study “How do trading houses within the paper and board industry navigate risks and disruptions in international trade, through their role as an intermediary?"

Abstract

This bachelor thesis explores in which way trading houses within the paper and board industry manage different risks and disruptions, through their role as an intermediary operating within an international business environment. In the current volatile global landscape, intermediaries are fundamental actors in order to maintain trade flows as well as mitigate uncertainties. The study is based on a qualitative single case study of a Swedish trading house, with interviews providing insight into how risk is perceived and managed in practice. The findings show that risk is perceived as a constant in international trade, and is preferably handled through experience-based and relationship-driven strategies, rather than formal risk management processes. Further, intermediaries play a crucial role and create value by absorbing uncertainty, connecting buyers and sellers, and responding to disruptions in real time. In conclusion, the study underscores the strategic importance of adopting decentralised risk management strategies that prioritise human judgement, local expertise, and trust-based relationships. However, depending heavily on these informal structures could lead to challenges, including inconsistent internal practices and human error. Therefore, the aim should be to integrate and balance both structured and informal strategies, simultaneously.