The program combines the disciplines of identifying the key risks which underpin the full range of international trade finance transactions underwritten by banks today.
The program enables participants to consider the different types of risk arising from (1) supply chain financing, (2) pre and post shipment loans, (3) import and export finance, (4) letters of credit transactions, and, (5) bid and performance bonds.
Reviewing each of these trade financing opportunities, the program will examine the following key risks:
- Counterparty Risk in Letters of Credit: Where credit risk arises from the opening and the advising and confirming bank’s perspective.
- Country Risk: the identification and importance of country risk in assessing international trade deals.
- Insurance and Reinsurance Risk: the role of government agencies and private insurance companies in mitigating the risk in international trade.
- Operational and Settlement Risk: the importance of identifying and controlling operational risk in both domestic and cross border trade transactions.
- Legal and Documentation Risk: the importance and role of accurate documentation in supporting international trade deals in order to protect the reputation of the bank.
The program uses short cases from the bank’s product expertise and capability in trade finance, with a particular focus on supply chain financing solution, customer and supplier payment flows, import and export letters of credit, the use of standby letters of credit in bid, performance, and advance payment transactions, and the different techniques for developing both pre and post shipment financing.