INTERNATIONAL CORPORATE STANDARD IN CREDIT ANALYSIS

Introduction

The recent global economy challenges of pandemic and other unforeseen economic meltdown evidently emphasis the need for greater awareness of credit risk and improved credit risk evaluation techniques. These global events such as Corona virus demonstrate the volatile markets nature and the important role banks play in financing the economy.

Poor credit analysis can lead to the downfall of banks and of economy. The course will understudy financial statements, business plans and market/economic indicators in order to manage credit risk and develop credit risk models based on sound international risk management policies. It will propagate risk reduction to ensure sustained profitability and increase returns.

Course Objective

At the end of this course, participants will be able to:

• Examine Credit Risk to meet Stress Tests and International Standards
• Evaluate Business Plans and Financial Statements
• Use Collateral and a Risk Based Approach to manage risk
• Effectively manage Credit Portfolio
• Evaluate the performance of a company based on quantitative and qualitative structures to assess the creditworthiness
• Determine a company’s ability to service/refinance its debt using a cash flow approach
• Ascertain appropriate market indicators and effects on refinancing risk
• Develop Computer Based Models to Evaluate and Analyze Price for Credit Risk

COURSE OUTLINE

MODULE 1: ENVIRONMENT OF CREDIT RISK

• Credit Risk Sources
• The Risk Return Trade Off
• Efficient Credit Policies
• External Indicators:
  • Corona virus
  • Interest Rates & Exchange Rates
  • Inflation & Recession
  • Oil Prices Etc
• Developing a Credit Risk Strategy & Implementing Credit Limits
• Risk & Exposure Limits:
  • Setting up a Diverse Credit Portfolio
  • Blend Group Position

MODULE 2: ASSOCIATED RISK & METHODS OF FINANCE

• The importance for Finance
• Methods of Finance
• Asset Finance
• Working Capital Finance
• Evaluating & Improving the Cash Flow Cycle
• International Trade Finance: Bonds, Letters of Credit & Country Risk

MODULE 3: CREDIT RISK EVALUATION

• Business Plans & Industry Analysis
• Financial Ratio Analysis of business Profitability, Liquidity, Operations and Leverage
• Financial Statements Evaluation
• Distress Models
• Risk Adjusted Return on Capital in Credit Decision
• Credit Stress Testing

MODULE 4: CREDIT ANALYSIS & PRICE MODELLING

• Internal Credit Rating Systems
• Credit Risk Modelling:
  • Credit Scoring
  • Distress Models
  • Value at Risk Models
• Rates & Fees in Risk Based Pricing
• Bond Rating & Credit Risk/ Value at Risk Modelling
• Computer Based Models to Assess & Price for Credit Risk
• Pricing for Risk and Basle/Regulations

MODULE 5: CREDIT RISK MANAGEMENT

• Credit Agreements & Covenants
• Managing & Monitoring Credit
• Credit Insurance
• Debt recovery
• Collateral

Who Should Attend?

• Commercial, Business & Corporate Banking
• Treasury
• Rating Agencies
• Real Estate Lending
• Corporate Credit Analysis
• Risk Management

Delivery Method: This will include combine lectures, discussions, group exercises, case studies and illustrations. Participants will also understand the theoretical and practical knowledge of the topic.

Venue: Gambia

Fee: $5,000

Duration: 1 week

Course Date: May 1st – 5th 2023