Risk Mitigation and Management

This chapter delves into the intricate domain of SCF, elaborating on its traditional and contemporary risk mitigation strategies. As global supply chains face volatility, understanding tools like SCF-based insurance, credit guarantees, and guarantor financing becomes pivotal. The chapter also distinguishes between financial and operational hedging, underscoring their respective roles in fostering supply chain resilience. Additionally, it navigates the regulatory terrain governing SCF and accentuates the importance of ethical considerations and sustainability in shaping responsible business decisions in the SCF sphere.