Introduction

It is essential in dealing with Offshore Financial Centers to develop a method identifying the various relationships created and the underlying risk associated with each part of a financial transaction. Analysts in the process of evaluating risks often divide them into three basic categories: legal risk, market risk, and credit risk. Political and sovereign risks can contribute to such unexpected results by virtue of Sovereign Immunity concepts, the Act of State Doctrine, and exchange controls.

Credit Risk

Credit risk includes the risk that a counter-party will not perform to contract as a result of Read More