COURSE CONTENT
Introduction
A general introduction will be given on foreign trade, establishing and
discussing:
why countries trade
the parties involved,
the different terminologies used for each of the parties in the
transactions (including INCOTERMS),
some important trade documents, and
how the traders pay each other .
Trade Risks
The requirements, risks and precautions the buyers and sellers
should each take to ensure risk free and profitable business are
examined.
Risks encountered by buyers / sellers
Performance / Acceptance Risks
Financial Risks
Price / Market Risks
Transportation Risks
Insurance Risks
Exchange Risks
Interest Rate Risks
Documentary Risks
Government Regulations Risks
Transfer / Cross Border Risks
Sovereign /Country / Political Risks
Fraud
The risks encountered by banks
Credit Risks
Country Risks
Other Risks
Inherent risks to banks in international trade
Inherent risks to banks in Documentary Collections
Inherent risks to banks in handling Letters of Credit
Inherent risks to banks in issuing Letters of Credit
Mitigating trade risks when issuing Letters of Credit
Precautionary steps by buyers and sellers in international trade
Mitigating trade risks for buyers
Mitigating trade risks for sellers
Mitigating non compliance of Government Regulations.
What is Fraud
Background of fraud
What causes fraud
Parties involved in international fraud
What is DC fraud
How does this happen
How can this happen
Scenarios in DC Fraud
Ways in which banks may lose
Creative uses of DCs
Types of Trade Fraud
Documentary fraud
Scuttling, Deviation and Cargo Theft
Arson
Charter Party fraud
Cargo Insurance fraud
Other types of trade fraud
Signals of Fraud
Tell tale signs of trade fraud
Key warning phrases
Red flags in Letters of Credit fraud
Red flags in container fraud
Shipment types
Fraud Prevention
Measures and policies against fraud
Consequences of fraud