Risk management services

Although inventory stock financing has been a common practice in Europe for more than a hundred years, banks generally have been reluctant to finance stock in emerging markets and countries with newly developed market economies because of perceived performance risks. In order to help financial institutions in finding solution to the stock financing problems in countries that are considered higher risk, ISI developed a package of services called RISK MANAGEMENT. Therefore ISI provides following Risk Managements services to Banks, Traders and Manufacturers :

  • Warehousing is safekeeping of goods on behalf of the owner of these goods (depositor), in a warehouse under the exclusive control of the affiliate (custodian). In a warehousing relationship, no party is involved other than the depositor and custodian. The latter must have complete, effective and exclusive control over the warehouse, both legally and physically, without any possibility of interference by any third party.
  • Collateral Management is an arrangement whereby goods under a warehousing agreement are used as a pledge to secure a loan. Collateral Management implies a relationship with a creditor (generally a bank) in addition to the warehousing agreement with the depositor/debtor.
  • Monitoring is a succession of inspections of goods in a warehouse whereby reports are issued to a party with an interest in these goods, such as a bank which has granted credit to the owners of the goods. Monitoring reports are only snapshots of the situation at the time of the inspection and the monitor has no control over the goods.