The Risk Management Study Of International Trade Settlement Business In X Branch Of Bank Of Communication

As the imports and exports of Chinese trade increasing continuously in recent years, China ranks the first in the global international trade gross amount in 2015 according to the WTO report. It is well-know that international trade has some risk intrinsic,especially in the settlement business, if could not control the risk successfully, it may lead all the efforts into failure eventually, also bring huge economy loss to the import and export enterprises, and result in putting an negative influence on the whole international trade development in China.This paper sets X branch of Bank of Communication as an example with three most important settlement methods:Remittance, Collection, L/C. I use the flower chart analysis the current situation, and collect many cases to forecast the potential risks, then get the conclusion that:Remittance,Collection and L/C all face various risks. Specially, Remittance faces national and foreign exchange risks; Collection faces the risks of difficult collection and collecting loss risks; under L/C settlement method, importer, exporter and opening bank face different risks. Lastly, based on the physical truth of X branch of Bank of Communication, and according to the total risk management theory, I provide some useful suggestions from the aspects of risk management strategy, risk management technology, risk management organization and risk management team. Besides I give a special study of the four big risks management, and provide the particular measures to control the risks of Remittance, Collection and L/C:control Remittance risks through risk avoid and transfer method; choose collecting bank carefully and make D/A, D/P transaction cautiously in order to reduce the Collection risks; under L/C, importer, exporter and opening bank should take different measures to management the risks; what’s more, it should not ignore the fraud risk in three settlement methods, in order to control and management the various risks of settlement business and promote the sustainable development of the X branch of Bank of Communication, as well as provides experiences and researches for other commercial banks.