TRA

TRA, or Transfer Risk Assessment, is a process used by financial institutions to evaluate the risk of losing money when dealing with foreign clients or transactions. It considers factors like the country’s political stability, economic conditions, and laws, as well as the client’s financial health and history. The goal is to identify potential obstacles, such as difficulty in collecting payments or transferring funds across borders, and to determine how much risk the bank is willing to accept. Essentially, TRA helps ensure that international transactions are secure and that the bank manages potential financial losses effectively.