Trade credit and risk management / Lucia Gibilaro.

Format:

Book

Author/Creator:

Gibilaro, Lucia, author.

Language:

English

Subjects (All):

Risk management.

Physical Description:

1 online resource (163 pages)

Edition:

1st ed.

Place of Publication:

New York, NY : Business Expert Press, 2019.

Summary:

This book offers managers a complete analysis of the various issues of credit risk management for trade credit financing instruments supported by applications to various types of markets and presents an analysis on risks associated with trade credit in supply chains. Trade credit finance is characterized by strong attractiveness deriving from risk mitigation, but the plurality of sources of credit risk (default and dilution risk) requires the implementation of a credit risk management system that exploits the broad knowledge developed by financing supply relationships. Consequently, financiers could be hindered from developing a full understanding of the underwritten risks and are thus unable or only partially able to evaluate their full potential to expand financial relationships over the credit capability of a single counterparty with respect to the supplier-debtor pair. The richness of the information available in trade credit financing is not an obstacle for the development of a modern risk management framework, but it must be calibrated to avoid distortions in the implementation. In addition, risk analysis in the supply chain is not limited to the crises of individual members but must assess the effects of such crisis on the entire supply chain and assess the specific risks of contagion and the favorable conditions for the propagation. This book offers managers a complete analysis of the various issues of credit risk management for trade credit financing instruments supported by applications to various types of markets and presents an analysis on risks associated with trade credit in supply chains.

Contents:

Cover

Trade Credit and Risk Management

Dedication

Brief Contents

Contents

Introduction

Chapter 1: Risk Management for Trade Credit Financing Instruments

Trade Credit Financing and Credit Risk Exposure

An Internal Rating System for Trade Credit Financing Instruments

An Internal Rating System for Exposures Based on Purchased/Assigned Trade Receivables

An Internal Rating System for Exposures Backed by Trade Receivables

Credit Risk Parameters: Theoretical Features and Empirical Evidence

Default Risk

Probability Default

Loss Given Default

Exposure at Default

Maturity

Dilution Risk

Concentration Risk: Alternative Approaches and Empirical Evidence

Conclusions

Chapter 2: Application of Credit Risk Measures to Internal Processes

Credit Risk Origination

Credit Risk Control

Credit Risk Management

Chapter 3: Trade Credit Instruments in Capital Adequacy Regulation

Credit Risk Capital Requirements: A Holistic View

Trade Credit Financing Instruments under theStandardized Methodology

Trade Credit Financing Instruments under the IRB Methodology

Exposures Based on Purchased Trade Credits

Exposures Collateralized by Trade Credits

Capital Regulation on Large Exposures

Chapter 4: Risk Mitigation of Trade Credit and Distress along the Supply Chain

Literature Background

Data

Methodology

Empirical Results.

References

Annex

About the Author

Index

Ad Page

Back Cover.

Notes:

Description based on print version record.

ISBN:

9781949443264

1949443264