Risk Management

Risk Management is a complex discipline even in the most straightforward commercial transaction. In the context of international trade and Trade Finance, risk is present at every step and in every market with each trading relationship. It is often the factor that makes international trade lucrative, and certainly adds complexity to the successful conclusion of trade transactions.

Although many refer to "managing" or even "eliminating" risk in business or international commerce, at TD Global Trade Finance (GTF), our approach is to understand your objectives, and to optimize risk accordingly.

In our view, risk is a core element of business (particularly international business), and is closely linked to return. It may be possible to virtually eliminate risk, however, the measures necessary to do so will typically be expensive, and may eliminate (or at least largely offset) the profitability of a transaction. TD GTF will provide business solutions and Trade Financing options that will mitigate risk appropriately, while preserving the profitability of your trade business.

There are numerous risk management and risk optimization approaches in international trade, and our Trade Specialists are available to help you assess the options and select the best solution.

Risk Management is perhaps most challenging, and most critical, in Structured Trade scenarios, where you may be working in high-risk Emerging Markets, or involved in complex financial structuring related to long-term projects and intricate credit and financing arrangements. In such instances, TD GTF can become a key member of your team, leveraging our extensive international network, and our intimate knowledge of various trade-related export credit insurance programs. Please contact us to discuss your needs in this area.

In addition to the normal risks associated with international trade, we may be able to assist you in identifying potentially fraudulent offers to do business, based upon our transactional expertise and our intimate knowledge of global markets. Fraudulent Letters of Credit, counterfeit "Prime Bank Guarantees" and "Advance Fee Fraud" are common and have generated large financial losses for many experienced business executives and entrepreneurs. If in doubt about any opportunity, please contact us.