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4 types of reactions to risk

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					4 Types of Reactions to Risk

 1.   Avoidance
 2.   Transference
 3.   Mitigation
 4.   Acceptance
  Techniques & Risk Response

           Technique              Type of Risk Response
Commercial Banks                Mitigation
Accounts Receivable Financing   Transference or Mitigation
Governments                     Transference
Factoring                       Transference
Forfaiting                      Transference
Counter trade                   Acceptance
Bankers' Acceptances            Transference
Credit Insurance                Mitigation
             Ex-Im Bank
• Short-term financing
• Medium-term financing
• Long-term financing
  Documentary
   Collection

                                                               2.
                                                                      Product is
                                                                       Shipped




                                         1.                             1.



Exporter/Seller                                Buyer & Seller Agree                                      Importer/Buyer



                                                                                                 6.            5.
                  3.                                                                         Documents
                  Documents
     5             & Draft



                                         4. Documents & Draft

                       Exporter’s Bank                                             Importer’s Bank
                                              5.

				
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posted:6/19/2013
language:English
pages:4