Trade Finance
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Mitigating Risk and Creating Competitive Advantage through Trade Finance

by Jeremy Shaw, Managing Director, Global Trade Executive, J. P. Morgan Treasury Services, EMEA

Managing financial risk has always been a core responsibility of the treasury function, but during a prolonged period of economic uncertainty and changing trade patterns, treasurers have also had a growing role in managing trade risks. The years up until 2008-9 witnessed a relative increase in open account transactions due to greater convenience and lower costs. However, the global financial crisis illustrated the importance of trade finance to increase predictability of cash flow, release working capital from the supply chain, and perhaps most importantly, to manage supply chain risk.