Credit Risk and Credit Analysis
In-House
Effective and accurate credit risk management is crucial for all financial institutions including banks, lenders and investors. This timely and topical course is created to equip delegates with practical risk analysis skills and enable them to make informative business decisions.
By the end of this course you will:
- Have a sound understanding of the key elements of credit risk
- Explore different methods of preparing credit risk analysis
- Learn to analyse financial statement and different financial ratios
- Develop frameworks for qualitative industry and company specific analysis
- Asses distressed credit situations
- Explore the latest risk mitigation techniques
This course is relevant for everyone involved in credit risk. No prior credit risk knowledge is required but delegates are requested to bring calculators.
Main Topics Covered During This Training
- Fundamentals of credit
- Analysing key elements of risk
- Risk mitigation strategies
- Quantitative and qualitative analysis
- Industry and company specific analysis
- Analysing distressed credit situations
Who Should Attend
From Banks, Lenders, Corporates, Rating Agencies, Private Equity and other financial institutions:
- Credit Managers
- Credit Analysts
- Risk Managers
- Corporate Finance
- Financial Analysts
- Investment Managers
- Treasury
Teaching Method
This is a highly practical course with many real life case studies and exercises. Tutor will be focused on teaching practical strategies that can be taken back to your business and put into immediate effect.
In order to help us establish your individual and business concerns, you will be asked to fill pre-course questionnaire.
Due to the practical nature of the course the number of places is limited and will be filled on first come, first accepted basis. We advise to book in advance in order to avoid disappointment.
Delegates are requested to bring calculators.
Credit Risk and Credit Analysis - A One Day Programme
Fundamentals of credit
- Key banking risks
- Market risk
- Operational risk
- Credit risk
Key elements of credit risk
- Country risk
- Industry risk
- Company risk
- Documentation risk
Risk limitation techniques
- Contractual methods
- Quantitative and qualitative analysis
- Market instruments used to mitigate risk
Contractual methods
- Covenants and documentation
- Review of a bank loan agreement
- Review of a high yield and high grade prospectus
Quantitative analysis
- Financial analysis – the key financial statements
- Ratio analysis
- Leverage & liquidity
- Earnings and cash cover
- Asset coverage and turnover
- Working capital ratios
- Rating agency metric definitions
- Signs of business deterioration
Qualitative analysis
- Industry analysis
- Porter’s 5 forces
- SWOT analysis
- BCG matrix, Ansoff and product life cycles
- Peer group comparisons – industry considerations
Company specific analysis
- Management
- Market position
- Capital requirements
- Financial policy
- Debt vs equity financing
- Assessing debt capacity
Distressed credit situations
- Assessing recovery rates
- Types of default
- Insolvency
- Bankruptcy
- Administration
- Liquidation
Mike Corless
The course director is a qualified chartered accountant who begun his career in Grant Thornton International and since 1986 worked in Ernst & Young as a senior manager in the corporate advisory team, working on major acquisitions, disposals, IPOs and insolvency/restructuring transactions.
In 1989 he joined Threadneedle Asset Management as an analyst, becoming a fund manager specialising in income funds in 1991. In 1996 he joined Scottish Widows Investment Partnership as a director in the UK Equity team, again specialising in income funds. On becoming head of UK Equities in 1998, he introduced a new investment process incorporating cash flow based corporate valuation techniques. In 2000 he was appointed head of UK Equities when Scottish Widows was acquired by Lloyds Bank and he led the integration of the UK Equity teams.
In 2001 he joined HSBC Asset Management as European Head of Equity Research, managing a team of analysts in Paris and London tasked with developing a new research team and research process.In 2004 he was appointed Global Head of Equity Research, responsible for 60 global equity research analysts and 40 global credit analysts. He developed a global valuation and research process, training local analysts in Europe, the US and Asia in its use.
In 2006 he joined BG Consulting Group, a professional training company, as the head of investment banking and investment management managing a team of 12 trainers. His experience at BG included managing major graduate programmes for investment banking and investment management clients, training graduate to managing director level participants and advising clients on their training requirements for accountancy, corporate finance and valuation, investment management and private wealth training.
His clients have included HSBC, Morgan Stanley, Deutsche Bank, Citigroup, Allen & Overy, JP Morgan, Barclays Bank, Barclays Wealth, Morgan Stanley Investment Management and Schroders.
IN-HOUSE TRAINING
If you have a team of 4 or more this course can be customised and organised in-house at your convenience. Contact one of our advisors to find out more.
Call us now on +44 (0) 207 193 5035
or send an e-mail to enquiry@eurekafinancial.com
