Credit risk
Inability and/or unwillingness to pay on the part of debtors and guarantors.
For example:
The buyer cannot or will not pay.
Country risk (political risk)
Risk that political events or measures may prevent the performance of contractual obligations.
For example:
War, rebellion, revolution, annexation, civil unrest, embargo, boycott, government debt, protectionism.
Country risk (transfer risk)
Impossibility of converting and transferring the amount paid in the national currency.
For example:
Payment ban, exchange controls, moratorium, consolidation, transfer ban.
Manufacturing and performance risk
Importer cancels or changes the order unilaterally, or importer is unable to perform the contractual obligations.
For example:
Due to production problems, financial difficulties of the producer, late delivery of goods or missing delivery.
Delivery risk
Contractual delivery is impossible or cannot be reasonably expected due to a subsequent increase in the credit and/or country risk, or due to lack of transportation.
For example:
No ship available.
Transport risk (insurance)
Goods lost or damaged in transit.
Currency risk
Appreciation and depreciation of a currency or fluctuations in the CHF/foreign currency exchange rate.
For example:
In the case of completion of a contract or invoicing in a foreign currency.
Technical risk
The product does not conform to contractual specifications or the machine supplied does not function correctly.
For example:
Manufacturing defect, defective assembly, poor quality.
Settlement risk
The key settlement risks:
Non-compliance with deadlines, non-observance of national regulations, incomplete delivery, customs problems, missing or incorrect documentation.
Mailing risk
If a documentary credit or guarantee is valid and/or payable abroad, there is a danger than the documents will arrive too late or will be lost. Result: the payment is delayed or may even not be effected.