StalconN

It is for this specific reason that banking specialists annually review the undergoing operations of both trade finance and treasury departments in search of inefficiencies and vulnerable areas so that effective operational solutions can be provided by means of placement of a comprehensive set of controls and internal regulation. This is to guarantee the bank processes sound transactions only whilst adhering to service standards similar to those adopted by reputable banks. Further, they seek to place effective operational controls to detect and prevent fraudulent commercial transactions. 
 
In this regard, we can make a big difference in the level of security your bank is operating under.
 
During the past 20 years, we have embarked ourselves on exploring the vast domain of banking operations and associated risks. This rather long practical experience was crowned by our global authoritative book “Standby Letters of Credit – A Comprehensive Guide” published in England by “Palgrave Macmillan” as part of their infamous and prestigious “Finance and Capital Markets Series”. Said title also tackles the effective risk mitigation methods of trade finance operations. Additionally, our team of banking experts genuinely masters the management of credit risk, interest rate risk, market risk, liquidity risk, operational risk and Forex risk.
 
In almost all of our research and advisory services, we have based our work on applying scientific risk mitigation methods such as the “duration and income gap analysis” in the bank’s risk management model. We are utterly convinced that it is the systematic approach based on well established risk management theories that would effectively eradicate operational risk and prevent commercial fraud. Nevertheless, I will confine myself in this communiqué to talking about the trade finance division strictly from an operational perspective.
 
Over the past two decades, the trade finance operations have progressed into a set of processes meticulously interacting with one another in a systematic manner geared towards running faultless operations. The sound application of the rules of practice pertained to trade services operations (UCP, eUCP, URR, URDG, URC and Incoterms) would be inadequate to protect the bank from operational hazards and commercial fraud; in fact these rules merely serve as the minimum requirements to evade any potential legal responsibility that may arise from the bank’s trade services transactions.
 
The complexity of trade finance operations stems not only from said rules that generally govern import/export deals, but also from the interchanging responsibilities of the parties during the various stages of  the operational process. Each step of the procedure pertained to a letter of credit for example, represents an immense operational risk to the bank and so is each presented document. Therefore, soundly regulating the procedural stages of the LC transaction in addition to regulating each type of documents that may be stipulated by an LC would most certainly protect the bank from technical losses and significantly mitigate operational risks.
 
Additionally, the trade finance division work is integrated with the operations of the corporate credit division, the treasury department, the audit department and the compliance department. If the bank’s internal regulations do not take into account such correlation, the trade finance operations may suffer severe operational hazards that could reflect negatively on the bank’s performance and financial results.
 
In exertion of our absolute commitment to provide you with a service of  highest quality, we offer your esteemed bank a professional undertaking indemnifying your good selves from any responsibility towards our firm should the services provided by us were not totally satisfactory.  We simply undertake to transform your trade finance division into highly efficient, productive and faultless sequence of integrated operations capable of turning your esteemed bank into a fierce competitor of any international commercial bank.