Credit Risk Management
- Andrew Fight, International banking and training consultant
Credit Risk Management will enable general bankers, staff, and credit analyst trainees to understand the basic information and principles underlying credit risk evaluation, and to use those underlying principles to undertake an analysis of non financial and financial risks when preparing a credit proposal. Since the best loans are the ones that do not present problems during the repayment phase, the authors also focus on elements relating to the proactive management of those loans during their inception.This book introduces:*Credit analysis, approval and management processes*Concepts of financial and non-financial risk*Financial statement analysis, including the use of ratio anaylsis*Cash flow analysis and forecasting*Security enhancement & management procedures designed to legally & financially manage credit riskView full description
MSc Finance Students, MBA students studying Finance options, new finance professionals
- Published: September 2004
- Imprint: BUTTERWORTH HEINEMANN
- ISBN: 978-0-7506-5903-1
Table of ContentsIntroduction to Credit Risk Management: What is the role of credit analysis?; Framework for credit analysis; Types of lending; Types of financial statements; Contents of financial statements; Different presentations of financial statements; Problems with financial statements; Analytical methodology; Outside information; Conclusion; Exercises; Business Risks: Introduction to business risks; Introduction to non-financial and transactional risks; Some questioning techniques; Nature of the obligor; Management; Macroeconomic risk areas; Microeconomic risk areas; Exercises; Financial Risks: Financial Statement Analysis; Ratio analysis; Cash flow forecasting; Transaction Risks: Term loan agreements; Covenants, events of default, and protection; Security enhancement; Follow up on loan agreement compliance; Background to loan agreement covenants; Failure and Risk Classification Systems: Identifying causes of failure; Failure prediction models; Annexes: Management attitude problem exhibit; Creative accounting exhibit; FRS and SSAP Accounting Reporting Standards; Glossary; Suggested Readings.