This case study aims to analyze the developmental history of Enterprise Risk Management System(ERM) of trading companies in Korea and in Japan which is at present generally accepted as a best practice not only in international trading industry but also in all the industry in Korea.
In nature, risk management area cannot provide many real cases to public, since risk basically means loss, damage, or catastrophe which companies concerned are not willing to share those information with public. However, risk experience or practice of a company can be substantially important information with which other companies can prevent same kinds of problem from occurring in them by reference.
International trading is one of the most risky business among all the industry area due to logistical, institutional, cultural, language, time distance between transaction parties involved. That is, the trading is one of the most appropriate industry that needs to be focused with respect to risk experience and risk management. From this standpoint, this is highly valuable case study both in international trading area and in risk management area.
Major Korean trading companies have suffered several times from fatal loss or damage. On the other hand, it also have overcame and survived the problems to develop the most innovative Enterprise Risk Management system in all the business area and companies in Korea. These experience and risk management system is worthwhile to be worked as a case study for trading business industry and for academic field in international trade.