Course Overview:
This course equips professionals with a solid understanding of international trade risks and financial strategies. Participants will learn to navigate challenges in cross-border business by exploring key topics such as risk assessment, currency, financial, and political risks, and payment methods.
The curriculum covers advanced concepts like bonds, standby letters of credit, export credit insurance, and structured trade finance. By the end, participants will have actionable strategies to mitigate risks and optimize currency management techniques, along with insights into multilateral development banks and project finance.
Target Audience:
- Trade Finance Managers
- International Trade Specialists
- Import/Export Coordinators
- Risk Assessment Professionals
- Financial Analysts in Trade Finance
- Purchasing Managers
- Corporate Finance Teams
- Business Development Executives
Targeted Organizational Departments:
- Finance and Treasury Departments
- International Trade and Compliance Teams
- Risk Management and Legal Departments
- Procurement and Supply Chain Units
- Export and Import Divisions
- Insurance and Credit Risk Departments
Targeted Industries:
- Import/Export Industry
- Banking and Finance Institutions
- Logistics and Shipping
- Manufacturing and Supply Chain
- International Development Agencies
- Insurance and Risk Management
Course Offerings:
By the end of this course, participants will be able to:
- Identify and assess international trade risks and develop strategies to mitigate them.
- Understand and apply currency risk management techniques, including currency exposure hedging.
- Navigate different methods of payment in trade such as letter of credit, bank transfers, and documentary collections.
- Manage export credit insurance and understand the role of export credit agencies in mitigating risks.
- Utilize structured trade finance and other trade finance options to support international transactions.
Training Methodology:
The course employs interactive methodologies that combine theory with practical applications. Participants will analyze case studies on international trade risks, focusing on currency and financial risks. Group work and simulations will enhance their understanding of payment methods, such as bank transfers and standby letters of credit. Interactive sessions will cover the identification and management of commercial and political risks, while feedback sessions will help participants reflect on complex topics like bonds in international trade and project finance.
Course Toolbox:
- Comprehensive ebooks on trade risk management and currency risk management.
- Templates for export credit insurance applications.
- Checklists for evaluating trade finance options such as supplier credits and buyer credits.
- Case studies on structured trade finance and international leasing.
Course Agenda:
Day 1: Understanding Trade Risks and Practices
- Topic 1: Trade risks and risk assessment
- Topic 2: Business beyond borders: trade risks
- Topic 3: International trade practices
- Topic 4: Product risks in international trade
- Topic 5: Commercial risks (purchaser risks)
- Topic 6: Adverse business risks
- Reflection & Review: Discuss key trade risks and best practices in risk assessment
Day 2: Political and Financial Risks in International Trade
- Topic 1: Political risks in international trade
- Topic 2: Currency risks in international trade
- Topic 3: Financial risks in international trade
- Topic 4: Methods of payment in trade
- Topic 5: Different methods of payment: pros and cons
- Topic 6: Bank transfers and cheque payments
- Reflection & Review: Explore financial risks and how different payment methods impact trade
Day 3: Advanced Payment Methods and Guarantees
- Topic 1: Documentary collection in trade
- Topic 2: Letters of credit in trade
- Topic 3: Counter-trade strategies in international trade
- Topic 4: Bonds, guarantees, and standby letters of credit
- Topic 5: The use of bonds and guarantees in trade finance
- Topic 6: Common forms of guarantees and demand guarantees
- Reflection & Review: Analyze various payment methods and the importance of guarantees in trade
Day 4: Currency Risk Management and Insurance
- Topic 1: Currency risk management
- Topic 2: Currency markets and currency exposure
- Topic 3: Hedging currency risks
- Topic 4: Practical currency management
- Topic 5: Export credit insurance and mutual undertakings
- Topic 6: The private sector insurance market and export credit agencies
- Reflection & Review: Reflect on strategies for managing currency risks and using credit insurance in trade
Day 5: Financing Options and Export Documentation
- Topic 1: Trade finance alternatives: pre-shipment finance, supplier credits, and buyer credits
- Topic 2: Refinancing of supplier credits and buyer credits
- Topic 3: The international money market and structured trade finance
- Topic 4: Project finance and joint ventures
- Topic 5: Terms of payment and cash management
- Topic 6: Export quotation preparation and international transport documents
- Reflection & Review: Final review of trade finance options and export documentation practices
How This Course is Different from Other International Trade and Finance Courses:
This course offers a comprehensive look at both trade and financial risks, going beyond basic international trade practices. It covers currency risk management, commercial risks, and advanced trade finance options like structured trade finance and project finance.
Participants will engage in hands-on workshops and real-world case studies to develop practical skills in managing currency exposure and export credit insurance. The course also provides insights into bonds, guarantees, and stand-by letters of credit, making it perfect for professionals looking to enhance their expertise in international trade finance.
