ABOUT THE SEMINAR

Why Trade & Commodity Structured Trade Financing (TCSTF) with their associated Risks Management initiatives continue to be essential enablers and basic tools in facilitating strategic trade flows. Asian countries have some of the richest resources as well as the largest consumers of commodities, well supported by an established financial sectors and infrastructures in the region. TCSTF & Risks Management will remain crucial & resilient while continuing to be the mainstay of every Banks’ assets.

How banks can better position and strengthen their TCSTF/Risks Management Desks with identifiable target markets based on a risk base and transactional approach in lending as they rebalance its portfolio in the wake of various headwinds.

Join us and learn from this 2-days Trade & Risk Management Seminar which will feature an overviews, insights and discussions on how Banks can formulate, refocus and set forth their efforts & strategies to stay vigilant & relevant in this challenging market. The seminar will dive into key operations, technical risks and practical aspects of TCSTF which are fundamental essential. It will also highlight major real-life issues, concepts and approaches, enabling participants to be fully aware of the inherent risks, drawing from practical lessons in identifying opportunities in rethinking customers centricity and engagement strategy to stay competitive.

Who should attend:

1) Management in Banks seeking to understand Trade & Commodity Structured Trade Financing

2) Head of Trade & Commodities Lending units, Risks, Audit or Compliance

3) Relationship Managers, Operational and Middle Office staffs

4) Management/Finance Managers of Commodities, Producers, Trading Companies & MNCs

5) Government Offices, Trade or Operational Professionals/Officers overseeing the industry

Participants who have practical experience in Commodity and Trade Financing such as UCP600, ISBP821, Incoterms 2020, security documentations and risks in trade & commodity financing.

MODERATOR / SPEAKERS:

For profile details on Moderator and Speakers, please visit Website : https://www.doccredits.com

Don’t miss this opportunity as DocCredits invites a panel of experienced veteran bankers, trade practitioners to update, share their experiences and practical insight on Technical, Operations, Risks, challenges and current trend.

OVERVIEW:

DAY 1 – 24 April, 2024 (Wednesday) 

Refreshing and updating on technical/operational/risk aspects of Trade and Commodity Structured Trade Financing:

Theme: Importance of a technically sound back up in Operations & Middle Offices functions working in close conjunction with a dedicated Risk and Compliance officers are absolute fundamental in providing competitive and professional standards of services to meet demands and increasingly unique needs of its existing and potential customers and in managing risks.

(1) Types of TCSTF:

• Purpose of LC confirmations & Irrevocable Reimbursement Undertakings
• Back-to-Back & Front-To-Back Letters of Credit
• Forfaiting
• What is Supply Chain?
• Using Special Purpose LCs, Networking & Connections to Expand Business Volume
• Financing Countertrade & 3^rd Country or Party Shipments
• Warehousing/Inventory Financing
• Bank Guarantee/Standby LC
• Account Receivable Financing

(2) Structure trade finance facilities: applying different approaches and tools. Refreshing: the basics featuring various types of traditional trade products and current updates.

(3)The many different ways LCs are handled in practice.

(4)The latest in UCP600, ISBP821 and InCoterms 2020.

DAY 2 – 25 April, 2024 (Thursday) 

Theme: What are the practical lessons that can be drawn after series of past defaults in Asia? The headwinds resulting from extreme price volatility, geopolitical tension, higher borrowing costs, regulatory sanctions, digitalization and ESG developments have reshaped lending relationships amongst banks and commodity traders and SMEs, alternative financiers and producers alike.

(1) Real-life past defaults/cases. Why the impact still lingers?  Useful lessons.

(2) Aftermath of major events in Singapore: Birth of Code of Best Practices: A useful guide.

(3) Why size of borrowers matters to banks?   Emergence of Commodity producers and major trading players have proven themselves to be resilient as they win big this time in the face of continued volatility and disruptions in global commodity markets.

Are banks losing its focus on transactional and asset-based financing?  Higher concentration risks?

(4) Mid-sized/niche traders: Are they really riskier?  What are the characteristics of these borrowers  and why banks are shying away whilst only  a handful few are comfortable?   Are they worth the risk and return?

(5) Understanding  “creative accounting”

(6) Development in ESG/ Energy transition/renewables/Sustainable Financing.

Role of Risk Department:

Definition of ERM

“Everyone in the Bank is a Risk Manager”

What we should know:

(1) General Risk Management Framework/Trade Finance

(2) Governing principles: ISO-31000 What is it?

• Trade Finance Objectives
• Trade Finance Process
• Good Corporate Governance

 (3) Risk Management Process : Identification, Assessment, Mitigation and Control.

• Risk Identification in TCSTF (Bank, transactional/documentary, price and market, counterparty, sovereign, goods & freight, IT and cyber risks).
• Risk Assessment: Inherent, Existing Control, Residual Risk.
• Determination of Risk Appetite and Risk Tolerance.
• Risk Mitigations Strategy
• Stress Testing Invoice value transactions & Trade Finance Portfolios