CERTIFICATE IN INTERNATIONAL TRADE RISK

The Certificate in International Trade Risk (CITR) is a Level 4 qualification that addresses the specific and complex risks inherent in financing cross-border trade transactions. In an increasingly global and digitally evolving trade landscape, financial institutions, exporters, and importers are exposed to various risks—from credit and foreign exchange risk to regulatory and fraud risk. The CITR program equips individuals with the technical expertise to identify, analyze, assess, and develop mitigation strategies for a wide range of trade risks. It is case study-driven, providing practical knowledge directly applicable to a professional setting, and is highly valued in the highly specialized domain of trade and transaction banking. It often builds upon the foundational knowledge provided by the LIBF's Certificate in International Trade and Finance (CITF).

Core Modules

• Unit: International Trade Risk (ITR) (Level 4) Focus: Comprehensive understanding and practical application of trade risk assessment and mitigation strategies.
• 1. Risks in International Trade: Overview of various risks (credit, country, political, foreign exchange, operational, fraud, compliance) and their impact on importers, exporters, and banks.
• 2. Risk Profiling of Settlement Methods: Detailed analysis of the risk implications of different trade settlement methods (open account, collections, documentary credits, guarantees).
• 3. Trade Risk Analysis: Techniques for conducting transactional and client risk assessments, including the relationship between client credit quality and transactional structure.
• 4. Trade Risk Mitigation & Finance Structures: Exploring security options for banks, key risk mitigants, and determining appropriate trade finance structures (e.g., forfaiting, factoring, supply chain finance) and their risk profiles.
• 5. Financial Crime & Compliance: In-depth coverage of regulatory compliance (AML, KYC), sanctions, and the detection and prevention of trade-based financial crime and fraud.

Learning Outcomes

• 1. Identify and assess the different risks involved in financing international trade and their impact on various parties.
• 2. Analyze and evaluate the risk profiles of different methods of trade finance settlement.
• 3. Determine and apply effective risk mitigation strategies for a variety of international trade transactions.
• 4. Understand the key risk areas and ascertain appropriate finance structures and acceptable risk mitigates.
• 5. Demonstrate an understanding of the terminology, methods, and practices specific to international trade risk and compliance (AML/KYC).

Specialization

International Trade Risk Management