Risk Management in Export Compliance Concepts, Procedures, and Solutions

Abstract There is a growing consensus that firms’ corporate governance influences their ability to export. corporate governance extremely relies on export compliance as a framework which supports organizations in order to mitigate their risks associated with export, and provides a safe platform for firms to upgrade their position in world of trade. The objective of present study is to widen theoretical concepts of export control and compliance framework. The paper outlines the general structure of export compliance and presents a comprehensive view from United State of America and European Union as significant powers in world. The nature of the risks is explained from the point of view of export compliance. In this study, we reached to dual-use risk and money laundering risk as main problem in EC area. After explaining risks, we deepen on the process of the risk management. The methodology of this study is document analysis with inductive approach. Secondary data has been collected through manuals, export compliance related websites, guidelines issued by various regulatory bodies, guidance note suggested by various institutes, legal provisions in legislations of different countries and various research papers were reviewed and their findings were used as a secondary data to develop this paper. JEL Classification Code: F340, F510, F520, G320, K220 Key Words: Export, Export Compliance, Control, Risk Management, Dual-Use, Money Laundering.