Unveiling the Mystery of the Special Attention List

I remember the year I first entered the industry when an old client suddenly appeared on Sinosure's special watch list. At the time, I was puzzled: how did this long-term client we had worked with for three years end up "on the list"? It was only later that I realized this list is likeforeign tradeThe "risk barometer" of the industry hides many transaction codes invisible to us.

The Special Attention List of Sinosure is not an arbitrarily compiled blacklist, but a dynamic early - warning system based onthe big - data risk - control modelBased on my observation, when the following situations occur, enterprises are likely to be included in the monitoring scope:

• Continuous compensation cases: The same buyer triggers more than 2 claims within 6 months
• : The asset - liability ratio exceeds 85% or the current ratio is less than 1
• Concentrated outbreak of trade disputes: More than 3 suppliers simultaneously report the default behavior of the same buyer

The risk logic chain behind the list

A typical case handled last year can well illustrate the problem: A certain South American buyer originally had a good credit record, but was suddenly included in the list. Through the Sinosure specialist, we learned that the countrysforeign exchange reservesIn that month, there was a sudden drop of 40%, and expectations of currency depreciation were strong. Sure enough, three months later, the buyer defaulted on payment, citing "foreign exchange controls" as the reason.

The evaluation dimensions of the Special Attention List are far more complex than what appears on the surface:

• Micro level: The buyers payment records, financial statements, and litigation status
• Mesoeconomic level: Industry prosperity and supply - chain stability
• Macro level: The host countrys foreign exchange policy and political risk rating

The risk firewall for foreign - trade enterprises

Dont panic when you find that a client is on the list. Last year, a German client of ours appeared on the list, and we turned the danger into safety througha three - step response methodas follows:

1. Immediately initiateTransaction review: Check the amount of unexecuted orders and the payment period
2. implementationDynamic guarantee: Change 30% of the balance payment to be made by bank guarantee
3. EstablishRisk Reserve: Provision for bad debts at 5% of the contract amount

It is recommended to log in quarterlySinosure Enterprise Service PlatformDo three basic checks:

• Update the risk status of existing buyers
• Risk rating of target market countries
• Trend of industry loss ratio changes

Warning signals outside the list

Although the special attention list is good, foreign trade practitioners should cultivateSelf - risk control awareness。The "folk indicators" I've summarized often provide earlier warnings than official alerts:

• The buyer suddenly requestsTo extend the payment period, even if its just 15 days
• Regular orderAbnormal fluctuations in quantityExceeding 30%
• The other partys financial contact personFrequent replacement
• Time - limit requirementsL/CTermsUnusual modifications occur

Remember during the China - US trade war in 2018, we monitoredUS retail inventory data, and adjusted the credit policy for US customers two months in advance, avoiding the large - scale payment default wave that followed.

Build a three - dimensional defense system

The special attention list is just the starting point of risk management. A matureimport and exportEnterprise should establishA three - level defense system:

• In advance: Customer Credit Rating + Insurance Limit Approval
• During the event: Logistics Tracking + Document Monitoring
• After the event: Quick Claims Settlement + Debt Recovery

Recently designed for customersRisk hedging solutionsIt's quite interesting: For buyers from RCEP member countries, a combined strategy of "30% Sinosure + 20% cross-border RMB settlement + 50% forward foreign exchange hedging" is adopted to simultaneously manage exchange rate risks and credit risks.

The foreign trade arena is full of challenges. The special attention list is like the mark of hidden reefs on a nautical chart. Used well, it is a navigator; used poorly, it may become a stumbling block to business expansion. The key is to understand therisk logicbehind the list, neither being a nervous wreck nor a reckless adventurer.