Course Overview
"The course 'Financial Ratios and Credit Risk ' has been designed to impart basic knowledge on 'credit risk analysis', the important element in any lending decision.
The course is relevant for both, Credit Risk personnel as well as any Relationship Manager. For the Credit Risk people, it helps form a clear framework of business risk, financial risk and management risk analysis so that it can be adopted at enterprise level. For the Relationship people, it helps to quickly filter out the credits that will meet their internal guidelines so that they can use their time efficiently.
The course on 'Financial Ratios and Credit Risk' delivers knowledge on fundamental concepts of credit risk through a step-by-step understanding of the financial ratios and cash flows so that the finance officer understands the financials of the company better. The next steps are the assessment of business risk, industry risk, management risk and various other / related factors. These are introduced through a case study approach."
Ideally Meant For
For a person seeking a career as a either of the following - Credit Executive, Credit Relationship Manager, Bank back-office Credit Operations executive, Bank Manager, NBFC Credit Executive for Corporate Products, NBFC Corporate Credit RM, Financial Institution Executive.
Why take this course
"On completion of this course, the subscriber will be confident in analysing credit risk-related problems and proposals. This will increase the visibility of the subscriber at the workplace and lead to better prospects.
On receiving the certificate, you can mention this certification in your CV. Prospective recruiters can send certificate code to TrainingCentral to confirm authenticity and be convinced on your knowledge in this subject."
Need Assistance?
Give a missed call on 8587999769
Course Objective
On completing this course, you will be able to,
- Demonstrate competency in calculation of key financial ratios
and the understanding of relevant elements of the balance sheet
and profit & loss statement.
- Demonstrate a command on the practical aspects of credit risk,
business risk, management and industry risk evaluation.
- Understand the various documentary requirements of the
procedures, pitfalls in monitoring and control and trends in the
area of working capital management, and
- Explain your role in the management of credit risk and financial
statement analysis in a more informed manner.
Methodology
A large engineering giant is coming out with bonds. An
investment guru has suggested that it is a good buy and written
a 2 pager to his clientele on the company and the issue. He is
approached by his HNI customer /s on the wheteher they should
invest in it on basis of the name of the company only? .
He explains them on all the relevant points such as –
- What is the source of information?
- What is the industry?
- What is the Management outlook?
Personal investment and what all can go wrong?
The course will take the learner through an interaction with the
experts, to assess the understanding on critical areas.
1 Introduction to Credit Risk analysis
- Basic concepts of credit risk, why credit risk is important, factors that
- drive an entity to default, key elements of credit risk analysis
- Framework for analysing credit risk.
- Unique aspects in assessing credit risk of an SME
2 Financial risk analysis
- Key financial ratios to be analyzed from a lender’s perspective for an
SME.
- Commonly used ratios, how to compute these ratios, relevance of
these ratios and what is ‘acceptable’ level for each ratio.
- Working capital cycle – tracing the cash cycle, computing key ratios
- Qualitative aspects of financial analysis – assessing for future
performance, financial flexibility.
- How to deal with ‘doctored’ financial statements?
3 Walk-through Case study on Financial risk analysis
Course test with walk-through the participants on a live case study –
Annual report, compute key ratios, form a preliminary credit opinion
4 Case study
Annual report, form groups for computation of key ratios and form an opinion on financial risk
5 Business risk analysis
- Importance of Business risk analysis, identify key factors that drive
business
- Use of tangible parameters to measure business risk profile of SMEs
- product profile, value addition, customer profile, competitive
scenario, track record, key growth drivers
- Live examples of SMEs with strong and weak business position
6 Credit risk analysis
- Other elements of credit risk analysis viz. promoter / management
profile, parent/group support
- Importance of security / collateral
Summary and Quiz
- Summarize the key learnings for the course
- Quiz in multiple choice questions format to validate extent of
understanding
