International Contract Risk Analysis is the process whereby an analyst identifies risks in a particular trade transaction and proposes solutions to reduce these risks.*

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A type of Documentary Collection is document against acceptance, where the exporter is paid once shipment has been made and draft is presented to buyer for payment. The buyers bank will not release the shipping document to buyer until buyer has paid the draft.*

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Letter of Credit is an instrument issued by a bank on behalf of exporter promising to pay the importer upon presentation of shipping documents. The exporter's bank gives a guarantee to the importer's bank to transfer goods to the exporter on its behalf.*

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An irrevocable L/C a letter of credit that can be canceled or amended without agreement of all parties, whereas the revocable L/C is a letter of credit that cannot be canceled at any time without prior notice to the beneficiary.*

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International trade finance instruments, risk insurance, international financial institutions and aid agencies, and risk transfer are all different risk mitigation options that could be explored by exporters and importers alike to manage risks.*

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The Bill of Exchange is a written and unconditional order signed by the exporter and drawn on the importer, demanding payment of the face value of the draft. It is a negotiable instrument or document guaranteeing the payment of a specific amount of money, either on-demand (sight), or at a set time, whose payer is usually named on the document.*

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Trade transactions handled on a draft are processed through banking channels. Although in documentary collection, exporters bank collects the payment for the exporter, draft hold less protection of exporter as banks are not obligated to honor payments on buyer's behalf.*

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A bill of shipping is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. It is a document of title, a receipt for shipped goods, and a contract between a carrier and shipper.*

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