30 years: Commodity & trade finance
In this video, Aidan breaks down the credit risk focus of trade finance, and the importance of their management. This includes settlement risk, performance risk, and logistics risk.
In this video, Aidan breaks down the credit risk focus of trade finance, and the importance of their management. This includes settlement risk, performance risk, and logistics risk.
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9 mins 28 secs
This provides a constructive framework for Credit Managers to use in assessing transactional trade and commodity trade finance deals that facilitates transparency, a more informed risk assessment, and ensures that what really matters is considered.
Key learning objectives:
Define and identify how performance, settlement and logistics risk should be managed
Understand what constitutes a ‘delivery’
Identify what prevents the seller from performing
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It’s a primary consideration since, if the seller has limited or no experience in doing what is required, the probability of success is much lower than it would be if he had a positive track record. If there is doubt on the seller's ability to perform, the transaction is likely to be refused, or to have collateral required beyond the goods and their receivables.
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.