Credit Risk Assessment

Banks and financial service companies have to assess counterparty risk as part of their daily life. But credit risk assessment is not the sole preserve of banks. Suppliers, possible joint venture partners, and customers have to be assessed to.
Our customised programmes (we always work as an extension of the credit/risk function) are geared to be highly interactive and practical and use the client’s own risk assessment methodology down to spreadsheets and financial analysis tools.

These can be run at all levels.

The following is a list of what could be covered:

Credit Risk: Definitions
A framework
Environmental, Industry and business risk
Assessing corporate health
Preparing for the client interview
Due Diligence
Financial Analysis:a framework
Typical ratios
Creative accounting:getting behind the figures
Cash Flow:calculations and uses
Calculating debt capacity
Free cash flow v/s EBITDA
Cash burn analysis
Forecasting
Putting a proposal together
Covenants and conditions
The legal issues
Monitoring and grading
Basel 2 issues
Failures:recognising the early signs
Recoveries and workouts