Compliance Risk
Compliance risk in trade is the exposure a company carries from potential violations of export controls, sanctions, and customs regulations. It's not uniform — a manufacturer exporting dual-use electronics to distributors in Southeast Asia carries different exposure than a food importer sourcing from USMCA countries. Risk assessment starts with the product (what controls apply), the markets (which destinations and end users), and the internal process (how reliable is the classification and screening program). OFAC's enforcement guidelines explicitly reduce penalties for companies with strong compliance programs and voluntary disclosure practices. Building a defensible risk profile — documented, reviewed annually, and proportionate to actual exposure — is what separates companies that survive enforcement contact from those that don't.