Risk Management
Published  5 MIN READ
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Taking a Holistic View of Trade Risks

by Kasper Krebs Jensen, Global Trade Finance Advisor, Nordea

Kasper Krebds JensenCompanies do not always appreciate the bigger picture when it comes to the risks involved in international deals — or the trade finance products that can be used to mitigate these risk exposures.

At Nordea, we have seen our customers increasingly formalise their financial policies. As a result, many improve their capability to manage risks, particularly when it comes to international trade.

In a Nordea survey on hedging1, 86% of CFOs and group treasurers at many of the major companies in the Nordic and Baltic region told us they had a formal treasury policy. Surprisingly, however, 28% admitted they did not update the policy annually.

Our survey also showed that Nordic companies are managing FX transaction risk and the interest rate risks of regular loans using systematic hedging. But some basic payment questions remain, such as whether or not the treasury policy looks at counterparty risk or if it factors in payment, delivery, bank or country risks.