Risk classification in international trade using methods of cluster analysis

Michaela Bučková; Martina Krügerova; Michal Kozieł; Hana Štverková

doi:10.23762/FSO_VOL11_NO1_5

Published : 2023-03-30

Vol. 11 No. 1 (2023)

Risk classification in international trade using methods of cluster analysis

Michaela Bučková

https://orcid.org/0000-0003-0979-3046

Martina Krügerova

https://orcid.org/0000-0001-5049-8183

Michal Kozieł

https://orcid.org/0000-0001-8561-0358

Hana Štverková

https://orcid.org/0000-0002-8481-3767

DOI: https://doi.org/10.23762/FSO_VOL11_NO1_5

Abstract

For an exporter, when exporting goods or services, it is important to know the situation in the countries to which the company wishes to export. Territorial risks can have a significant impact on operations, both in the form of profits and huge losses. To assess such a risk, the exporter may rely on credit insurance companies that regularly evaluate the risks of the given country. All insurance companies attempt to collect quantitative and qualitative data as accurately as possible with the aim of conducting an in-depth analysis of potential risk. However, insurance companies have their own methodologies for evaluating international risks, which may differ according to the organisation. The article applies cluster analysis to the assessment of territorial risk based on the example of OECD countries with the aim of classifying countries according to territorial risk based on selected indices. From a practical point of view, the benefit of the article is the use of the cluster analysis method for the purpose of classifying countries according to territorial risk; it offers exporters another source of information about the country which they are interested in exporting to. From a theoretical point of view, it is beneficial to identify key indices that together represent territorial risk and thus fulfil the general definition of territorial risk.

Keywords:

cluster analysis, export, hierarchical methods, OECD, risk assessment, risk map, territorial risks

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Bučková, M., Krügerova, M., Kozieł, M., & Štverková, H. (2023). Risk classification in international trade using methods of cluster analysis . Forum Scientiae Oeconomia, 11(1), 91–112. https://doi.org/10.23762/FSO_VOL11_NO1_5

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Michaela Bučková

michaela.buckova@vsb.cz
https://orcid.org/0000-0003-0979-3046

Affiliation:

VSB – Technical University of Ostrava, Faculty of Economics Czechia

Bio Statement (e.g., department and rank)

Ing. Michaela Bučková is a doctoral student working at the Department of Law, Faculty of Economics, VSB – Technical University of Ostrava. She received her master's degree in the year 2019 in the field of Economics and Law in Business at the Faculty of Economics, VSB – Technical University of Ostrava. Her area of research is risks in international trade, risk management, Incoterms, insurance, and international trade law. The dissertation deals with the issue of risks in the implementation of international business transactions and their minimization using insurance products. She participates as the main researcher or co-researcher in several projects.

Martina Krügerova

martina.krugerova@vsb.cz
https://orcid.org/0000-0001-5049-8183

Affiliation:

VSB – Technical University of Ostrava, Faculty of Economics Czechia

Bio Statement (e.g., department and rank)

Ing. Martina Krügerová, Ph.D. holds a doctoral degree in Business Administration and Management. She works as an assistant professor at the Department of Law, Faculty of Economics, VSB-Technical University of Ostrava. Her scientific interests are mainly in the areas of insurance law, regulation of insurance intermediaries, risk management and area of liability. She is the author of over 50 articles, papers in proceedings, and professional publications in the areas of insurance, risk management and international trade.

Michal Kozieł

michal.koziel@vsb.cz
https://orcid.org/0000-0001-8561-0358

Affiliation:

VSB – Technical University of Ostrava, Faculty of Economics Czechia

Bio Statement (e.g., department and rank)

Dr Mgr. Michal Kozieł, Ph.D. is assistant professor at Department of Law, Faculty of Economics, VSB – Technical University of Ostrava since 2012. He has received a master’s degree in law in 2009 and double Ph.D. degree in financial law in 2014 from Masaryk University, Faculty of Law and University of Bialystok, Faculty of Law. He specializes in fields of financial law, public finances, rationalization of public expenditures, breach of budgetary discipline, business law and society law. He is founder of society The Polish Law Centre and member of the Center for Information and Research Organization in Public Finances and Tax Law of Central and Eastern Europe Countries.

Hana Štverková

hana.stverkova@vsb.cz
https://orcid.org/0000-0002-8481-3767

Affiliation:

VSB – Technical University of Ostrava, Faculty of Economics Czechia

Bio Statement (e.g., department and rank)

Ing. Hana Štverková, Ph.D., MBA, LL.M. holds a doctoral degree in Business Administration and Management. She is the head of the Department of Business Economics at the Faculty of Economics, VŠB-TU Ostrava, and Visiting Associate Professor at the University of Johannesburg, School of Public Management, Governance and Public Policy. She has been working with the practice for over 15 years. She is the author of over 110 articles, papers in proceedings, and professional publications in the areas of SMEs, business administration, management, and quality. She has been a member of several research teams involved in SME research.