Managing credit risk for global commodity producers

The global financial crisis has brought credit management practices back onto the boardroom agenda of most large exporting producers. Credit exposure for a single customer can be in the order of several hundred million dollars for large producers. Despite the turmoil of the past two years, many commodity producers still use unsophisticated credit risk management practices.

This paper describes the credit risk issues faced by global commodity producers and highlights examples of best practice in the areas of the assessment and management of credit risk.