Risk assessment is encouraged when dealing with trade finance. Risk management is the process of identifying, assessing, and selecting an appropriate response to an identified risk in a business transaction. Financial crime risk factors; risk mitigation; due diligence; a holistic evaluation of financial crime risk; and a holistic assessment of securities fraud risk are the four primary areas of focus.
All parties’ credit histories must be checked, and additional due diligence conducted on other parties as required. Consider the end-buyers’ and payments’ non-financial and financial risks before approving a transaction.
