Business Risks Analysis & Asset Conversion Cycle

Business Risks Analysis & Asset Conversion Cycle

Learning Objectives

• Use a set of analytical tools to evaluate the external operating environment of a business.
• Use a set of analytical tools to evaluate the internal operations of a business
• Identify how the major risk issues prevalent in an industry and business environment is impacting the asset conversion cycle and financial outlook.
• Identify how the risks affecting the borrower’s business is being mitigated, if at all.
• Evaluate the extent to which a borrower’s management has the experience and skills needed to carry out the company’s strategies successfully.

Rationale

A good credit analysis involves: -

1.      A sound understanding of the borrower’s business based on the analysis of the underlying activities as set in its operating environment. This is done using:

a.     Qualitative (non-financial) and

b.     Quantitative (financial) information derived not only from the customer but various other sources.

2.      Drawing conclusions, on the basis of the historical analysis, about the state of the customer’s business.

3.      Creating hard and soft value for both the bank and the customer through sound facility structuring.

Course Content

•      Introduction to Business Risk Analysis & the Assets Conversion Cycle
•      Importance of industry risk analysis and sources of industry data
•      Industry risk analysis toolkits
•      Strategies for mitigating industry risk
•       Dealing with industry risks – case study (1)
•       Business risk analysis toolkits
•       Strategies for mitigating business risk
•       Impact of business risk on financial performance
•       Dealing with business risks – case study (2)

Duration: 2 days

Skill Level: Intermediate

Delivery Mode: Virtual

Month: March