Trade Risks and Fraud Management

INTRODUCTION

With the growing industrialization programs, the manufacturing and import-export sectors have an increasingly important and major role in the economy.

This in turn, has created the need among players for greater awareness of the range of ancillary services available (from banks, if involved) and the need for compliant shipping documentations to facilitate and satisfy international transport and regulatory requirements, and these growing complexities of (international) trade is fraught with uncertainties / risks / fraud.

It is therefore crucial that players are kept abreast with the requirements of the business transaction/s, avoid unnecessary risks, and identify the dangers of fraud so as to secure profitable and trouble free business.

OBJECTIVES

Provide participants with an outline of various trade documents and services available from banks and elsewhere and forewarn them of risks and fraudulent practices associated with them.

Upon successful completion of this course, participants will be able to:

• Name the services and trade financing products offered by banks.
• Be mindful of the risks associated with shipping documents.
• Take appropriate action on discrepant shipping documents.
• Recognize warning signs / practices to avoid fraud.
• Implement fraud prevention measures in workplaces.

WHO SHOULD ATTEND?

Bank Supervisor, Executives or Officers who require adequate knowledge of the risks associated with trade services and bank financing products and how to mitigate risk/s in using them.

METHODOLOGY

Interactive lectures and group discussion
(inclusive of ICC Rules and appendixes on sample of documents and forms)

OUTLINES
Trade Risks

1. Basics of trade and risks to parties involved
2. Terms of payment and delivery and risks to parties involved
3. Challenges to parties in business
4. Categories of risks
5. Risks to Traders / Banks with transactions where no Letters of Credit (LCs) are used
6. Features of various LCs and risks to users in each of them, viz:
   • Buyer / applicant
   • Seller / beneficiary
   • Issuing Banks
   • Advising Banks
   • Confirming Banks
   • Negotiating / Financing Banks
7. Risks in using Bank Guarantees

Trade Fraud

1. Nature and types of fraud
2. Causes of fraud
3. Internal and external fraud
4. Documentary fraud – associated with various shipping documents
5. Areas prone to fraud
6. Warning signs of fraud
7. Consequences of fraud
8. Suggested measures to mitigate fraud
9. Q & A

LINKS

Register Here
Download Brochure