TCF Training_Part1

Which types of credit risk do you know?

• Pre-shipment risk

• Delivery risk

• Political risk

• Customs risk

Which events are commercial risks?

• war, revolution, riots

• insolvency of the purchaser

• purchaser's failure to meet its contractual obligations

• damaged equipment

Which tools do you know to manage credit risks?

• Risk avoidance

• Risk acceptance without further approval

• Risk transfer

• Risk approval

Cash in advance is the best payment term for us as an exporter.

• True

• False

How can you transfer the credit risk to third party?

• Credit Risk Insurance (Private Market or ECA)

• Letters of Credit

• Risk Approval

• Bank Guarantee

A guarantee is not accessory but

(a)  

A surety is accessory (any modification of the contract has a direct impact)

• True

• False

A Letter of Credit is only a security instrument, no payment instrument

• True

• False

What applies to an export credit agency?

• for non-marketable risks

• for marketable risks

• Sourcing is important

• OeKB responsible for Europe