Written by Bazel McDanielMay 23, 2024
Understanding Credit Risk Contagion and Mitigation Strategies in Trade Finance
Economic Factors Article
Credit risk contagion within supply chains arises when financial distress in one firm cascades through interconnected businesses, causing widespread liquidity issues and increased credit risk. Trade credit insurance plays a crucial role in managing these risks by protecting against non-payment and stabilizing cash flow. The COVID-19 pandemic has further transformed trade finance, highlighting vulnerabilities and