Credit Risk Management - NEW

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16-17 May 2019 London

Special Christmas Offer until 20 Dec £1750 + VAT. Regular price £2095 + VAT. 5% discount for 2 & 10% for 3 people.

Course Description

Effective Credit Risk analysis and management is a key factor for financial companies lending money.

The objective of this course is to give participants an overview of the end to end approach to credit analysis from origination through to documentation signing. 

By attending this practical 2 day course conducted by an experienced City professional you will gain the skills to analyse the specific risks applicable to an individual business, and how to establish tools and methods to protect the lender’s position against those risks. You will also gain the ability to develop a strategy to effectively monitor transactions to capture early warning signals of credit quality deterioration.

Through a wide variety of case studies and exercises, from a number of industries and geographical locations you will reinforce the major learning outcomes. The course is highly practical and participants will be encouraged to share their experiences through exercises and group discussions.

What Will You Learn

This workshop will provide delegates with: 

  • A practical methodology to apply in relation to the credit assessment of a potential borrower
  • The ability to demonstrate a robust understanding of both the financial and non financial drivers of a business; and their impact on future performance
  • An understanding of the importance of cash flow as the key driver of the borrower’s ability to repay
  • The skills to analyse the specific risks applicable to an individual business, and how to establish tools and methods to protect the lender’s position against those risks; The ability to develop a strategy to effectively monitor transactions to capture early warning signals of credit quality deterioration

 

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Register for any 2 courses at the same time & save £100 + VAT (in total, not per course).

Main Topics Covered During This Training

  • Understanding Credit Risk 
  • Understanding the borrower’s financing requirements
  • Risks to repayment: Qualitative analysis
  • Management Assessment 
  • Risks to repayment: Quantitative analysis
  • Risk Mitigation Techniques
  • Credit application writing and presentation

Who Should Attend

This workshop is targeted at those involved in credit analysis as part of their day to day job roles.  It will be of particular assistance to:  

  • Risk managers and credit analysts
  • Middle and back office personnel 
  • Business managers and team leaders 
  • Auditors and inspectors
  • New Entrants to the banking sector 
Register Now

16-17 May 2019 London

Special Christmas Offer until 20 Dec £1750 + VAT. Regular price £2095 + VAT. 5% discount for 2 & 10% for 3 people.

Credit Risk Management - A 2 Day Course

An overview of Credit Risk

  • The importance of credit to support economic growth
  • Regulatory influences and other external considerations
  • An introduction to the General Principles of Good Lending
  • Understanding what influences a lender’s approach to credit risk
  • Risk Appetite, and establishing Risk Acceptance Criteria
  • Methods of Credit Risk Assessment 

 

Understanding the borrower’s financing requirements

  • Different Financing needs discussed 
  • Sources of repayment
  • The importance of matching the lending product to the borrowing purpose 

 

Risks to repayment: Qualitative analysis

  • The big picture; macro-economic, political and country risk considerations
  • Regulatory and Sustainability influences 
  • Industry analysis and the competitive positioning of companies
  • Product/service analysis – Does the borrower have real USP’s?
  • Supplier and Buyer Analysis – consideration of potential for concentration, delivery and payment risks

 

Management Assessment 

  • The role of Management and the need for objective assessment  
  • Assessing Management’s Strategy and Displayed Risk Preference
  • Assessing individuals and the adequacy of the Governance Structure
  • The funding strategy – understanding the objectives
  • Practical Management Due Diligence – Effective questioning and observation

 

Risks to repayment: Quantitative analysis

  • The correlation between Qualitative Risk and Quantitative expectation.
  • Understanding the role and reliability of accounting records
  • Accounting policies and relative transparency
  • The principles of Ratio Analysis – the key tool to support the assessment of financial trends
  • The principles of Solvency and Liquidity – their drivers and impact on debt repayment capacity
  • Demystifying revenues & profitability - sustainability, what areas to focus on and what they really reveal
  • Using Asset based ratios to assess operational efficiency
  • Understanding cash flow drivers and the importance of working capital management
  • Assessing future investment needs 
  • Evaluation of how a company funds itself, and the appropriateness of balance sheet composition
  • Impact of off balance sheet instruments
  • Analyzing and sensitizing financial projections

 

Risk Mitigation Techniques

  • Understanding the principles of structural risks posed by lending into group companies
  • Managing subordination risks related to other lenders or stakeholders.
  • The Use of Collateral – the potential benefits and dangers 
  • The use of Loan Covenants and Controls – what they and what they achieve
  • The principles of effective loan documentation 

 

Credit application writing and presentation

  • What does an approver need to know and what may influence the decision making process
  • How to write an effective credit application using a practical methodology
  • Presenting for results – techniques to support presentation of proposals to credit committees or other sanctioning bodies

 

Effective obligor monitoring

  • Financial vs. non financial warning signs
  • Establishing portfolio triggers outside of credit agreements
  • How to react to signs of credit deterioration 
Tim has a banking career spanning almost 40 years, during which period he has worked for RBS Group, Santander Group and Moody’s Corporation.
 
The first 12 years of his career were spent in RBS retail banking where he rose quickly through the ranks to become Operations Manager of a large UK provincial branch.  He subsequently moved into a Senior Credit Risk role, where he was responsible for the establishment and management of a new of a new centralised team that used technology solutions to monitor the bank’s small business customer base across England & Wales; the objective being to identify and initiate remediation strategies for emerging problem loans.
 
In the early 1990’s Tim moved into Corporate Banking, and initially spent 4 years in a debt restructuring role.  He subsequently moved to the world of Corporate & Structured Finance and spent the following 15 years originating, structuring and managing the credit risk related to complex leveraged transactions.  In that capacity he was involved in negotiating both Senior Debt and Mezzanine lending positions, both as a bi–lateral lender or as part of a syndicate.    
In 2009, Tim returned to Corporate Debt Restructuring, initially as a transaction lead banker, but subsequently as the Global Head of Technical Learning & Development for the Restructuring Division of a major bank with operations in 23 countries worldwide.  
 
Tim subsequently led a team of Credit Analysts looking at large exposures in the Manufacturing, Mining and Transport sectors on behalf of Santander Global Banking Markets before taking on an interim role as the interim Head of Credit for a fast-growing UK based Challenger Bank, supporting the highly successful IPO of that business. before becoming a full-time financial services trainer and academic lecturer.  In that latter capacity he has undertaken numerous assignments right across the EMEA region and also in Asia. 
 
Tim is an Associate of the Chartered Institute of Bankers of England & Wales. 
Credit Risk Management - NEW <p>Effective Credit Risk analysis and management is a key factor for financial companies lending money.</p> <p>The objective of this course is to give participants an overview of the end to end approach to credit analysis from origination through to documentation signing.&nbsp;</p> <p>By attending this practical 2 day course conducted by an experienced City professional you will gain the skills to ... London