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?
This one and a half day program on "Trade Finance Risk Management" will cover the risks 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 key concepts in risk management.
Objectives
Upon completion of this program, participants will:

Be aware of risks exposed to bankers in LC, SBLC and LOI operations.
Be on the alert to risks 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.

Delegates' Profile
The program is targeted at delegates who have a considerable exposure to the international trade finance operations.

Trade Finance Managers & Officers in banks
Export / Import Managers & Supervisors in trading firms
Documentation Managers in freight forwarding services
Chief Finance Officers from international trade corporations
Lawyers providing trade finance services

Contents Outline

RISK IN COMMERCIAL LETTERS OF CREDIT OPERATIONS

Procedure risk
Risk in transferable L/C
Disputes over discrepancies and wrongful dishonour
Notice of dishonour and conversion
A banker's right of recourse
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)
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

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
Risk in instructing a collecting bank to provide storage and insurance of the goods

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

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.
His workshops are well known for 4 "i's" - interesting, insightful, inspiring and interactive.
Workshop Facilitator - T. O. Lee FAE, MCIArb, MITD

Duration
1.5-day workshop
Language
Handouts in English
Recommendations

"A brief discussion with Mr. T. O. Lee will convince you of his expertise on international trade particularly for his knowledge and experience in maritime chartering, multimodal transport, marine cargo insurance, trade frauds, the China Trade, mediation and arbitration".
Charles del Busto - Chairman of ICC Banking Commission and Chairman of UCP 500 Working Party
"Mr. Lee's presentation is thought provoking and original in its content. It brings to light not only problems with documentary credits but also solutions that you could obtain only from practical experience working in the field. I highly recommend it to both bankers and traders who are serious about letters of credit".
Jacob Katsman - Managing Editor, LC Monitor, Toronto, Canada
"Most comprehensive information in the handouts, inspiring presentation, professional in every respect, introducing the latest international trade fraud cases with in-depth analysis".
S. C. Kwok - Vice President, Citibank, Hong Kong
"Handouts are clear, concise and focused, with lots of real life cases to reflect the current trading environment and the important changes in the market place".
Kenneth Y. M. Lee - Senior Consultant, Bank of Communications, New York, USA

(905) 237-6465

(905) 237-6867