Notification:
NAB Mobile Banking app
Update your browser.
This website doesn't support your browser and may impact your experience.
You can't avoid risk completely, but understanding the market risks your business might face is a good starting place.
Foreign exchange risk
Foreign exchange risk is your exposure to fluctuating exchange rates. Foreign exchange markets are volatile and are constantly moving. These movements can have implications for any business that has receipts and/or payments in a foreign currency. On conversion, these receipts/payments can change in value from one day to the next, depending on the rate at which they are exchanged.
Interest rate risk
Interest rate risk refers to your exposure to fluctuating interest rates. Interest payments can be a major cost for many businesses. If an interest rate of 5 per cent moves up just 0.5 per cent it will result in a 10 per cent increase in interest cost. This is a significant direct cost that may impact cash flow, profitability and business strategy as cash that may have been reserved to pursue other opportunities is absorbed by the interest rate change.
Commodities price risk
Commodity risk refers to your exposure to either fluctuating movements in commodity prices or uncertainty surrounding expected commodity production, affecting both producers and consumers.
Commodity prices can be volatile, which can expose your business to unfavourable prices when it's time to buy or sell in the market place. Ignoring commodity risk can impact your business cash flow, profitability and future planning.
Trade risk
There’s a range of issues to be managed associated with both domestic and international trade including:
- risk of trading partners becoming insolvent, defaulting on payment, committing fraud or being unwilling to accept goods
- uncertainty of dealing with new suppliers or buyers
- operating in foreign jurisdictions
- control over shipment and delivery schedules
- receiving the goods of the quality and quantity ordered
We can help you manage or minimise the most common trade-related risks for your business.
Help and guidance
Whether your business is getting started or growing, choosing the right transaction account is important. Financial markets
Discover the risks you may face in your business. Risk management checklist for small businesses
A guide to developing business strategies to a manage risk. Risk management strategies for small business
Get in touch
Sales enquiries
Let us help with your business banking needs. Request a call back to chat with one of our business bankers.
Contact us
Visit our business banking contact page for how-to-guides, FAQs and contact numbers.
Visit a NAB business banking centre
Let our business banking specialists help you in person.
Terms and Conditions
Apologies but the Important Information section you are trying to view is not displaying properlyat the moment. Please refresh the page or try again later.
Examples are for illustrative purposes only and does not reflect current prices or outcomes. The information provided on this webpage is intended to be of a general nature only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on the information on this webpage, National Australia Bank Limited (ABN 12 004 044 937, AFSL and Australian Credit Licence 230686) (NAB) recommends you consider whether it is appropriate for your objectives, financial situation and needs. NAB recommends that you seek independent advice before acting on any information on this webpage.
Target Market Determinations for these products are available atnab.com.au/TMD.
