Types of risk in the context of commodity and structured trade finance.

Main Article Content

K.V. Kozlovskyi

Abstract

One of the key criteria of the business project success including financing at both international and local levels is the precise differentiation and control over the risk. There is a vast variety of risk categories within the context of commodity and structured trade finance that have a continuous impact on businessmen, finance providers, traders and end users.

The most common are the situations where interaction with the risk is under researched that leads to the negative outcome. Such cases require a detailed analysis and assessment of the factors triggering risk growth. On the contrary, long-term strategic relations combined with extensive experience and market knowledge may establish the grounds for both partners to gain high level of confidence in concluding the business when the general political and economic situation are heavily influenced by negative factors.

The article researches the specific types of risk common with structured trade finance operations within the context of performing trading operations by international businessmen. Strategy of interactions with such risk is defined allowing to mitigate the risk and minimize the negative effect it creates.

Article Details

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Статті
Author Biography

K.V. Kozlovskyi

кандидат економічних наук

References

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