ABSTRACT
Risk is a reality of business, and when business crosses borders, cultural contexts, legal systems and commercial practices, it is amplified both in the probability of encountering it, and in the impact it is likely to have on a transaction or trading relationship. Trade and supply chain finance has evolved from pure transaction focus, to include significant information flow between importers, exporters and their financial services providers and other business partners. Trade finance mechanisms and transactions enable proven and effective risk management options. The effective mitigation of risk is undoubtedly one of the core components of the overall value proposition around international trade finance. Trade finance has proven effective and robust in helping companies of all sizes to navigate the many risks that can be encountered in international commerce even in the most challenging markets and commercial conditions on the globe.
