International Trade Risk Management Practical

Transcript:International Trade Risk Management Practical:
International Trade Risk Management Practical Solutions for the Trade Creditor Raul Davila Senior Manager, International Credit RAVAGO S.A. RAVAGO S.A. The Ravago group represents over 3,400,000 metric tons of annual polymer sales serving 40,000 active customers through 200 offices across more than 50 countries worldwide with more than 4,500 employees. Ravago’s production competence consists of 23 manufacturing facilities of which 18 recycling and compounding plants in North America, Europe and Turkey. Ravago has more than 200 subsidiaries located in over 50 countries: each one of the entities pursues sustainable growth. Our continuous ambition is to capture rising opportunities on a global scale. From Belgium to the USA and from Dubai to Hong Kong we supply products to customers worldwide. RAVAGO: Product Offering, Markets and Applications Note: Other Products (24.9%) include additives, ASA, scrap polymers, and other polymers not grouped for this slide Raul Davila Education Bachelor’s of Science degree in Economics from Catholic University in Quito Finance degree from Monterrey Institute of Technology ITESM in Mexico Employment History 20 years of experience in Credit, Banking and International Trade Ravago: Credit Risk Manager for Latin America Bamberger Polymers: Credit Risk Manager of International Sales IIG Investment Fund: International financial products Muehlstein: Credit Manager for Latin America Banco del Pichincha in Ecuador: Corporate Relationship Manager and Project Past-Chair for the International division of the National Credit Chemical Association. Currently a Board Member. Recently joined the Advisory Board of ICTF. TRADE RISK MANAGEMENT COMPROMISE TEAM WORK WHEELING AND DEALING! RISK AND COST HIGH RISK LOW RISK Difficult Simple CREDIT INSURANCE Cash in Advance / Prepaid in Full 100% of the value of the invoice is wired in advance Goods are shipped Always “Know Your Customer” (KYC) Documents are sent directly to customer Venezuela Gov. does not accept this kind of transaction Argentina accepts it, but obtaining the import license is a nightmare Low risk and easy Cash Against Document Payment against proof of shipment. “B/L”, invoice, certificates. In reality, it is Cash against Document at Arrival Consignee of Documents: “To the Order” Low Risk “To the Bank” Low Risk “To the Subsidiary” Low Risk “To the Customer” High Risk Documents comply with the regulation of the country. For example, Argentina. Credit Department must check and set limits to these types of transactions “KYC”. Documentation should be handled by foreign banks, subsidiaries or trustful agents. Cash Against Documents – 2 - What happens if