Learn the framework for assessing and managing credit risk. Throughout this series, we address financial statement analysis, cash flow analysis, qualitative analysis, and discuss best practices for managing the credit risk of your credit portfolio. Each session addresses different concepts to be built upon throughout the series.
All of the Credit Boot Camp webinars are instructed by Brad Stevens. Brad has been leading the credit industry as an analyst, trainer and consultant for over 30 years. He is a strong believer in Bankers Training Bankers.
This webinar series features 5 different presentations:
#1 - Financial Analysis: What’s the Question?
To properly assess the risk of repayment, we need to understand how the business has performed over the past several periods; this is called trending. The data needed for this process is several years of financial statements, also known as the borrower’s story about how they have managed their business activities. We do financial analysis to determine the questions about “what” has changed so we can determine the “why” the number changed. The explanation of the “why” is called risk identification and is the first step in making a reasoned credit decision.
#2 - Cash and Repayment: Getting the Money Back
Learn how to help determine the cause of a cash shortfall and ability to generate cash for repayment so that they can more effectively and efficiently analyze a borrower’s credit request. Topics covered include application of the cash-to-cash cycle to risk assessment, cash drivers resulting from borrowers behaviors, cash sensitivity and impact on ability to repay.
#3 - Qualitative Analysis: Events That Make the Numbers
Financial analysis, which is really quantitative analysis, is about looking at the numbers and assessing the changes. However, it is not really credit analysis until the outcome of the numbers has been explained. That explanation involves moving from the numbers to the events that caused the numbers to look the way they do. Making an assessment of those events involves qualitative analysis. This allows an analysis to be performed around the events, not just the numbers and allows the borrowers business performance to be more thoroughly explained.
#4 - Credit Structure and Monitoring: Managing Credit Risk
Making loans is the easy part; collecting them is much more difficult. Credit structure is the tool commercial bankers use to manage to repayment. This webinar will focus on structuring of commercial loans. The intent is to provide a process for structuring credits to increase the likelihood of repayment. Gain an increased awareness of the role of covenants in managing credit risk; the difference between the asset being financed and collateral as a repayment source; and increased awareness of the role of pricing/profitability.
#5 - Credit Analysis to Drive Relationship Enhancement
Credit is a key need of businesses. Bankers gather financial information to assess the risk of making that credit available. Most bankers treat these customer interactions as a “yes” or “no” activity. In today’s competitive financial world a bank needs to have a competitive advantage. This workshop will provide tools for bankers to provide a “no, but” response to customers and prospects. Rather than saying “no” and ending the potential for future contact, learn how to use a “no, but” that will provide viable solutions to the customer's problem while keeping the door open for future contact.
