Credit Risk Management

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

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

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

 

Effective obligor monitoring

  • Financial vs. non financial warning signs
  • Establishing portfolio triggers outside of credit agreements
  • How to react to signs of credit deterioration

 

Trainer

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.

 

FAQ

We offer banking and finance courses as well as soft skills and business management training. You can either attend an open public course in London or Dubai or arrange customised in-house training to be delivered in any of your offices worldwide.

Most of our public courses are run over 2 full days. Some programmes are offered as a 1 or 3 day training.

In-house training is tailored to client’s requirements and can be organised over 1 day, 2-3 weeks or longer.

Public courses are organised mainly in London and Dubai. Occasionally we organise courses in other centres like Paris or New York. Check our public course calendar for the current list of programmes. We use a range of training venues, all in the centre of the cities and with excellent transport links to the airports and train stations.

In London we use venues in the centre (near Oxford Circus station or in Mayfair) or in the City (near Liverpool Street or Moorgate stations).

In Dubai our courses are organised in one of 4-5* hotels in the Deira district. Once you register we will send you detailed information together with accommodation options if required.

Our in-house courses can be delivered anywhere in the world. We work with over 25 trainers worldwide. Contact us do discuss your requirements. Check our list of available programmes.

Our courses are run in central locations from 9 a.m until 5-5.30 p.m. There are 2 coffee breaks and a lunch break. Lunch is always provided in the venue.

Dress code is smart casual.

All our programmes are taught by senior specialists who have spent many years in their respective sectors, working as senior managers and head of departments, so they understand very well the market and the challenges you are facing.

The experience of our trainers allows us to create very practical programmes, focused on current market trends and challenges. You can be sure that you will gain the knowledge which can be instantly applied in your workplace after the course. You will be analysing real life case studies, take part in group exercises and discussions as well as role plays, whenever applicable.

We want our courses to be as practical and interactive as possible so we limit the number of participants in order to optimise your time with the trainer and allow you to ask questions which are important for you.

In order to understand your requirements and expectations, we will send you a pre-course questionnaire.

You will also receive post-course support so if you have any questions after you left the training, you are welcome to contact us.

There are 2 easy ways to register:

  1. Go to the course of your choice and click Register Now button to fill the registration page
  2. Email us to enquiry@eurekafinancial.com

After you register, we will send you registration confirmation and an invoice so you can arrange the payment. Please note that your place is not confirmed until we receive it.

If you register within Early Bird discount period, there’s limited time to arrange the payment in order to be eligible for the discount. You will find all the details on the invoice.

We don’t advise to make any travel and hotel arrangements until you receive full course confirmation from us.

We will send you venue and course details as soon as possible but most likely about 3-4 weeks prior to the course commencement.

You can pay by:

  • Making a bank transfer
  • Debit/credit card
  • Cheque payable to Eureka Financial Ltd. - only within UK

Just mark preferred paying option on the registration form. Whichever form of payment you choose we will always send you an invoice.

If you pay by card, a 2.2% processing fee will be added. We will send you authorisation form so you can give us your card details.

Included in the price of a public course are:

  • Course tutorial
  • Take away course materials
  • Course Certificate
  • Lunch on the days of the training as well as drinks and snacks throughout the course

The price doesn’t include accommodation, flights, transfers and any additional costs outside of the training venue.

Yes, we always offer Early Bird discount, so the sooner you register the more savings you can make. We also offer group discounts and if you register for 2 or more programmes at the same time.

If you are a full time student or unemployed, we offer a 25% discount of the full price of the training. Student ID or unemployment status confirmation is required to claim this discount.

If you attend one of our courses you will be entitled to a special discount for a year after the last course you attend with us. Also, if you have attended and recommended us to a friend, both you and your friend will receive a special discount. You will receive more information about it after you attend the course.

See our Customer Loyalty Discounts page for more details.

All our courses based in the UK are subject to the VAT charge of 20%. This fee is irrespective of the country of residence of the delegates.

You can, however, claim the VAT back by contacting UK tax office - HMRC, and filling the relevant form, as long as you comply with the following rules:

For Delegates coming from the EU countries

If you represent a registered business in another EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the UK
  • You don't make any supplies in the UK

You can find some more information here. In order to claim the VAT you have to fill Form 65.

For the Delegates from Non EU countries

If you represent a registered business in a non-EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the EU
  • You can only use the Refund Scheme if your own country operates a similar scheme and makes it available to UK businesses. If your country has its own Refund Scheme but doesn't let UK businesses use it, you can't claim under the UK Refund Scheme.
  • You don't make any supplies in the UK

If the following rules apply to you, please fill the 65A form and send it to HMRC.

If you are unable to attend the course, you can either send a replacement at no extra charge or, up to 20 working days before the training, you can transfer your booking to another course within the next 6 months for an additional fee of 25% of the full course value. Please note that you can only transfer once.

Alternatively, for cancellations requests received more than 20 working days before the course date we will offer a refund less an administration fee of 10% of the course price.

We regret that no refunds can be given after this period. Non-attendance without any notification will be charged at full rate.

Cancellations must be made in writing and reach our office 20 working days prior to the course date.

Your place on a course is not guaranteed until we receive the payment. All payments must be made in full before the course date.

All our trainers have been working for many years in their respective sectors before they begun to teach so they bring a wealth of practical experience to the classroom.

Most of them used to work for 15 or more years in the financial sector and corporate world, and were holding positions of Directors, VP and Senior Managers. Some of them have published books and have written articles for specialised magazines and newspapers including FT, The Independent, The Times etc. You can find detailed biography of each trainer on the page of the course you want to register for.

Yes, you will receive a Certificate of Attendance at the end of the course you attend.

If you have to apply for a Visa to attend a course in the UK, we will issue a letter to support your application. The letter will be issued only after the payment for the course has been made.

It is delegate’s responsibility to obtain a Visa and failure to do so will not make the participant exempt from the cancellation policy.

Anyone suspected of applying for a training course simply to gain a Visa letter will be reported to their embassy.

We will need the following information to issue an invitation letter:

  • Full name as it appears on your passport
  • Date of birth
  • Passport number
  • Passport issue date
  • Passport expiry date

18 - 19 Jun 2020, London

Register by 20 Jan to save £345

Early bird price £1750

Regular price £2095



This topic can be arranged on in-house basis. If you have a group of 4 or more we can customise it and deliver in any location worldwide. Contact us to discuss your requirements


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