The risks of the craft

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The trader assumes many risks, and it is the mastery of these that distinguishes the durable houses from the adventurers.

Price risk, hedged with derivatives, leaves basis and liquidity risk in place. Credit risk concerns payment by the buyer and delivery by the seller; banking instruments, credit insurance and the selection of counterparties allow it to be mitigated. Logistical risk concerns delays, damage, loss of cargo and the failure of carriers. Political risk concerns expropriation, export restrictions, embargoes and conflicts in producer or transit countries. Sanctions risk, which has become a major concern since 2022, concerns the sudden unlawfulness of transactions entered into with countries, companies or persons targeted by restrictive measures. Legal and compliance risk concerns corruption, money laundering, sanctions violations and breaches of due-diligence obligations, which expose the trader to criminal prosecution. Reputational risk, finally, concerns the standing of the house with its banks, its partners, the authorities and the public.

Risk	Nature	Mitigation
Price	movement in prices between purchase and sale	hedging with derivatives, position limits
Credit	default in payment or delivery	documentary credits, guarantees, credit insurance, selection
Logistical	delays, damage, losses	insurance, choice of carriers, monitoring
Political	expropriation, restrictions, conflicts	diversification, political risk insurance, investment treaties
Sanctions	sudden unlawfulness of transactions	monitoring, contractual clauses, counterparty screening
Legal and compliance	corruption, money laundering, violations	compliance programmes, controls, training
Reputational	damage to standing	governance, transparency, responsible conduct

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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The risks of the craft

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