The Exporters Perspective Under The Letter Of Credit Fraud Risk Management Studies

With the rapid development of world economy today, the international trade becomes especially important. As one universal settlement method, letter of credit has been widely adopted. Fraud under L/C emerges because of the accelerative advance of foreign trade in China, the incompleteness of supporting power and the defects in the L/C system and etc. We have to examine this phenomenon closely because of its great potential effects, the varied and complicated features. This thesis discusses how to prevent and control the risks on fraud under L/C and how to avoid the heavy loss after risk identification and risk analysis from the views of exporters. The thesis researches the risk strategy and proposes the solutions based on the theory of risks management and cases study. First, the theses introduces briefly on the necessity of enhancing risks management concerning to the fraud under L/C. Then it retrospects and analyzes status of L/C, fraud under L/C, risks, risks on fraud under L/C, the features and causes of it. After explaining and analyzing risk identification and risk factors in detail with cases study, the thesis mainly investigates the risk strategy on fraud under L/C from three aspects:pre-management, mid-management and after-management. It puts forward two types of preventing and controlling mechanism maps about risks on fraud under L/C during pre-management:the internal integrated mechanism map of preventing and controlling risks on fraud under L/C and the external mechanism map of preventing and controlling risks on fraud under L/C participated by government, regulators and relative departments, banks and exporters. Both supplement each other and take strict precautions against fraud under L/C. At last, the theses briefly introduces foreign trade and settlement methods of Lianyungang city and Natiprol Lianyungang Corporation and analyzes the situations and measures taken by exporters on fraud under L/C in Lianyungang. By means of the above introduction, the exporters could effectively prevent and control the fraud under L/C and enhance the sound development of international trade. Therefore it will promote the steady international economic order.