Programme Overview:
The goal of this programme is to provide a Credit Analyst with diagnostic skills that can be immediately used upon return to their respective international banks or corporate credit departments.
Analysts will learn to use demonstrated analytical strategies which will enable them to assess the degree of risk prior to endorsing approval or rejection of a specific credit request. Another objective of
this programme is to enhance the documentation of commercial loan files which will reduce losses and will be viewed favourably by the regulatory community.
Programme Methodology:
This programme has been designed to be delivered in a highly interactive way, involving a mix of theory, interactive discussion and formal practical exercises. It is also expected that all participants will
contribute from their own experience and area of knowledge. This delivery method has been chosen to ensure that participants can maximise their skill development and experience sharing through peer
interaction.
Programme Timings:
Registration will be at 08:00 on the first morning. The course will commence at 08:30 and conclude at 14:30 on all days with two breaks for refreshments. Lunch will be served at the end of each day.
The order of topics may vary from this outline depending on the requirements and dynamics of the group – topics may not be addressed in the order stated herein
Day One
Role Of The Credit Analyst And Lending Officer
• The role of the credit analyst
• Stakeholders and their priorities
• The credit analyst’s network and resources
• Loan interview techniques
• How to develop a loan handbook
Group Exercise
Define the key stakeholders in your organisation involved in credit risk
and management, develop a workflow structure and diagram
Credit Analysis Procedures
• The credit analysis process – the five C’s and PARSER
• Regulatory issues – update on Basel II
• What is the manager’s loan handbook
Group Exercise
Develop a check list on the key credit analysis processes currently
necessary within your organisation
Day Two
Financial Statement Analysis
• Books of account
• Spreadsheeting and analysis techniques
• Ratio and trend analysis
Group Exercise
• Analyse a company performance utilising a case study
• Further develop the manager’s loan handbook
Financial Analysis
• Solvency ratios
• Cash flow analysis
• Debt service coverage – how do you properly account for various
conditions such as real estate holdings, excessive owner
compensation and timing issues?
• Adequacy of working capital, liquidity, and leverage position and
control
• Further analysis of the balance sheet, profit and loss statement,
cashflow statements and annual report
Group Exercise
Using the tools you have reviewed, analyse and assess a balance
sheet and undertake a cashflow exercise
Day Three
Structuring A Credit To Minimise Risk
• Proper loan structuring recommendations
• Collateral coverage analysis
• Loan covenant considerations
• Guarantor analysis
Group Exercise
Formulate a Balanced Scorecard utilising a case study
Non-Performing Loans/Distressed Debt
• Evaluating investment opportunities in debt heavy businesses
• Reviewing restructuring opportunities
• Implementing a system of red flag projections
Day Four
Financial Projections And Analysis
• Development of a loan portfolio
• Asset management
• Loan funding techniques
• Balance sheet impact
• Marketing opportunities for loan portfolio development
• Business and industry analysis
Group Exercise
• Construct a loan portfolio and undertake a risk assessment
• Further development of your individual loan manager’s handbook
Advanced Analytical Techniques
• Methods of generating and determining growth
• Break-even analysis and building a business for ROI
• Customer and segmentation profitability
• Mergers and Acquisitions (M&A)
• Finalise the loan manager’s handbook
Day Five
Current Issues In Credit Analysis
Practical Assessment Exercises
Tasks will be issued on an individual and team basis that will confirm your skills and ability to apply risk management techniques. The exercise will be by way of team discussion of case studies and individual comments on practical risk problems.
