Strengthen international partnerships and practices with the CICP

The longer you work in business-to-business credit, the sooner you realize how interconnected everything is. Over the past few years, more organizations have either started operating or forming partnerships around the world. This investment has not only helped expand businesses, but it’s broadened the overall risk management perspective. 

International trade credit relies heavily on short-term trade finance, comprised of trade credit, insurance or guarantees. Companies may decide to sell internationally to increase sales to new and existing customers, and to develop lasting customer relationships. This type of transaction benefits the other company because they get to purchase on credit terms, rather than paying prior to receipt of goods, and preserve cash. 

Though advantageous, global trade exposes trade creditors to new levels of risk, including country, sovereign, currency and foreign exchange risk. For those working abroad, staying informed and educated is not a choice, but a necessity. For Patty Pramann, CCE, CICP, credit manager at Michael Foods, Inc. (Hopkins, MN), earning her Certified International Credit Professional (CICP) as part of NACM and FCIB’s six-level Professional Certification Program, helped her learn how to manage risk with international customers.

“As we started expanding our business to South Korea, Japan, Europe, South America and Latin America, the CICP served as my formal introduction to international trade and prepared me for what’s ahead,” said Pramann. “By taking the required FCIB’s International Credit & Risk Management Online Course (ICRM), I gained a deeper understanding of risk management and started to perform better at my job. With this new knowledge, I can train my team on how to mitigate risk in global trade credit.” 

This experience taught Pramann more than just global risk management practices; it helped her form new connections and inspired her to continue learning. “I enjoyed getting to know and learn from people in credit from around the world,” said Pramann. “Hearing their perspective only enriched the learning process for me.” 

Study tips: Taking practice tests throughout the course can increase comprehension significantly for students. “I used Quizlet to test my knowledge on each subject because I liked how it changed the questions it asked each time,” said Pramann. “Because I don’t know what to expect, I’m encouraged to think on my feet and in a way, that helps me remember better.”