CFOs Face Rising Challenge of Pricing Counterparty Risk in Cross-Border Commerce
News Context
At a glance
- Counterparty risk has overtaken cost as the primary concern in cross-border commerce, driven by geopolitical instability, financial volatility and increased uncertainty around partners' ability to perform.
- Traditional risk mitigation methods like contracts, insurance and diversification are becoming less effective due to fragmented financial systems, delayed risk visibility and faster transaction speeds.
Counterparty risk has overtaken cost as the primary concern in cross-border commerce, driven by geopolitical instability, financial volatility and increased uncertainty around partners’ ability to perform.
Traditional risk mitigation methods like contracts, insurance and diversification are becoming less effective due to fragmented financial systems, delayed risk visibility and faster transaction speeds.
