International Trade Finance Risk Management Seminar

International Trade Finance Risk Management

(T. O. International Trade Seminars)

This announcement is for your prior information only. All details are subject to change without notice. Please verify them with the organizer before you act on it.

Introduction:
Trade financing has been widely used in many business transactions both at the domestic and international level. However, are bankers fully aware of the risk they are exposed to?
The 3-day program on "Trade Finance Risk Management" will cover the risk exposed via Letters of credit, Standby Letters of Credit, Guarantees, Back-to-Back Reimbursements and Trust Receipts. It will also help you further understand the legal aspects and grasp the crucial keys to risk management.
Objectives:
Upon completion of this program, participants will:

Be aware of risks exposed to bankers in LC, SBLC and LOI operations.
Be alert to risk associated with bank-to-bank reimbursements and trust receipts.
Understand the conflicts in different law systems and other jurisdiction risks.
Understand a banker's obligations under the law.
Gain many effective risk management skills and tools.

Workshop Facilitator:
Mr. T. O. Lee
FAE, MCIArb, MITD
Contents Outline:

OVERVIEW OF RISK MANAGEMENT

Introduction to risk management
Classification of risks
6M and FACT approach
Risk assessment
ICC rules on force majeure and hardship

RISK IN COMMERCIAL LETTERS OF CREDIT OPERATIONS

Document risk
Procedure risk
Incorrect interpretation of UCP 500 articles
Risk in transferable L/C
Risk in back-to-back L/C
Disputes over discrepancies and wrongful dishonour
Notice of dishonour and conversion
A banker's right of recourse
Estoppel and waiver
Risk for confirming bank
Fraudulent L/C and fraud rule
Government sanctions and injunctions
Discounting on deferred payment credits
"Intended vessel" dilemma

RISK IN STANDBY LETTERS OF CREDIT AND LETTER OF INDEMNITY

Differences between commercial credits and standbys
Certain UCP 500 articles not applicable to standbys
Solution offered by International Standby Practice (ISP 98)
SBLC - a favourable tool for the fraudsters
Risk in LOI - from a banker's perspective

RISK IN BANK-TO-BANK REIMBURSEMENTS

Risk from India, Bangladesh and Nigeria
Caution areas in ICC URR 525 Rules
No expiry for reimbursement claims

RISK IN TRUST RECEIPTS

Bankruptcy symptoms
Loopholes in partial delivery under T/R
Risk from lack of co-ordination and effective communication protocol
Risk arising from goods consigned directly to banks

LEGAL RISK

Conflicts in different legal systems
Applicable law, multiparty disputes, reservations in international conventions
Jurisdiction risk in arbitration
Matching terms and conditions in letters of credit with commercial contracts
The effect of UCP in international court
The UNCITRAL convention
Guidelines for managing trade disputes
A banker's obligations under the law - beyond reasonable care

Appendix:
BESIDES THE COURSE MATERIAL, THE PARTICIPANTS WILL BE ALSO GIVEN COPIES OF

UCP 500, ISP 98, URR 525.
RELATED ARTICLES BY T. O. LEE IN ICC & LLOYD'S OF LONDON PUBLICATIONS

Methodology:
Highly participative lectures and real life dispute cases taken from the speaker's work file with sensitive details removed to protect the privacy of clients.
Delegates' Profile:
The program is targeted at delegates who have a considerable exposure to the workings of the trade finance deals.

Senior Trade Finance Managers.
Credit Analysts who possess sound background of Trade Finance.
Export / Import Managers.
Senior Finance Executives From International Trade Organizations & Corporate.

Duration:
Three-day workshop

(905) 237-6465

(905) 237-6867