All workFILE 02 / 04

Trade finance

Risk portfolio & transaction policy

Shipped at Drip Capital · led by Shashwat Verma

01

The problem

A fast-growing trade-finance lender extends credit against invoices it has never seen before. Approve the wrong exporter and the loss lands on the book; approve too few and the business stalls.

02

The constraint

Every decision has to scale with volume without loosening: the policy that governs a $1B flow of transactions must hold as the portfolio grows past $150M.

03

The system

Risk models and an underwriting strategy feeding a written transaction policy: thresholds, exposure limits, and escalation rules that codify who gets credit, how much, and on what terms.

FIG. 01 · SYSTEM FLOW · 6 NODES · 7 FLOWS

Invoice & exporter data → Risk & exposure model (score). Risk & exposure model → Transaction policy engine. Transaction policy engine → Underwriting decision. Underwriting decision → Risk-lead sign-off (over limit). Underwriting decision → Portfolio ledger (within policy). Risk-lead sign-off → Portfolio ledger (approved). Portfolio ledger → Transaction policy engine (feedback)

04

The human in the loop

Exposures above policy limits route to a risk lead before funds move; the policy captures every decision so the next one is faster.

05

The outcome

A $150M risk portfolio managed and the policy governing $1B in annual transactions designed.