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Target Audience
This course is for all analysts and lenders who require advanced credit analysis tool and techniques in assessing risk and establishing loan structure.
 

Level III

311 Financial and Non-Financial Red Flags
321 Profitability and Cash Flow
331 Sales Growth and Borrowing Causes
341 Operating Profit and Debt Capacity
351 Management Assessment and the Credit Decision
 
 
   
Course Objectives
Identify the most useful financial risk indicators in providing unambiguous signals about the status and shifts in a company's profitability and cash flow from business operations;
Using specific measures of profitability and cash flow, establish a company's position on the Risk Grid and track shifts in the risk profile from period to period between the prosperity, operational illness, strategic illness, and terminal illness quadrants;
Review an array of non-financial red flags and determine the best sources of information for each non-financial red flag;
Assess the likely impact on company profitability and cash flow from business operations from the emergence of specific non-financial red flags;
Examine a range of possible loan covenants that may be useful in mitigating the risk from the emergence of specific non-financial red flags; and
Weigh the relative impact of financial and non-financial red flags and risk indicators in establishing the risk profile of a company and tracking shifts in that profile.
6 CEUs
Course Materials

Note on Key Ratios and Risk Assessment
1999 Financial Statements for Benson Manufacturing, Inc.
Loan Officer Summary for Benson Manufacturing, Inc.
Loan Officer Memorandum for Benson Manufacturing, Inc.

1999 Financial Statements for Sandover Contractors, Inc.
Loan Officer Summary for Sandover Contractors, Inc.
Loan Officer Memorandum for Sandover Contractors, Inc.
Exercise Set (downloaded from Shockproof! Training website)
Online Review Quizzes
Solution Set (downloaded from Shockproof! Training website)
Access to the Shockproof! Training Resource Center
Inclusion in the Shockproof! Training Discussion Forum
Online Credit Skills Proficiency Exam
Upon Completion

Participants who successfully complete the workshop will be able to:
Understand the purpose and intent of a range of financial risk indicators and understand the benefits and limitations of these financial risk indictors in helping to establish the risk profile of a borrower;
Understand the central role of the Business Drivers in reflecting fundamental business activities;
Understand the differences between Business Driver and Risk Assessment financial risk indicators and identify the most useful Business Drivers and Risk Assessment financial risk indicators in providing unambiguous signals about shifts in borrower risk and debt service prospects;
Use and apply a risk grid for quickly assessing the status and shifts in a borrower's risk profile;
Identify the appropriate sources of information about the existence and severity of non-financial red flags and track the impact of their emergence on a company's ability to properly service its interest-bearing debt; and
Identify appropriate loan covenants that may help mitigate the impact of specific non-financial red flags should they emerge.
Pricing and How to Order