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Risks
1. Currency Exchange Risk: International Paper Company is exposed to fluctuations in foreign exchange rates due to the nature of its cross-border trading activities.
2. Interest Rate Risk: International Paper Company may experience negative financial results if, due to increases in interest rates, its liabilities become more expensive to finance.
3. Commodity Price Risk: International Paper Company may experience losses if it is unable to accurately forecast changes in the costs of inputs such as wood, fuel and chemical products.
4. Economic Risk: International Paper Company may experience unfavorable changes in demand due to macroeconomic changes such as decreases in consumer confidence or recessions.
5. Regulatory Risk: International Paper Company is subject to compliance with a variety of international, national and local laws, regulations, and standards that can limit business operations or increase operational costs.