Credit Risk Assessment

Banks and financial services companies have to assess counterparty risk as part of their daily life. Credit risk assessment is not the sole preserve of banks. Suppliers, possible joint venture partners, and customers sometimes have to be assessed as well.

Our customised programmes (we always work as an extension of the credit/risk function) are geared to be highly interactive and practical and we use the client’s own risk assessment methodologies down to spreadsheets and other financial analysis tools like ratios.

The following is a list of what could be covered:

• Credit risk
• Environmental, Industry and Business risk
• Assessing corporate health
• Preparing for the client interview
• Due Diligence
• Financial analysis: Framework
• Typical ratios
• Creative accounting: Getting behind the figures
• Cash flow: Calculations and uses
• Calculating debt capacity
• Free cash flow vs EBITDA
• Cash burn analysis
• Forecasting
• Putting a proposal together
• Covenants and conditions
• The legal issues
• Monitoring and grading
• Failures: Recognising the early signs
• Recoveries and workouts