Training Courses

Risk Analysis & Credit Underwriting Skills

Category: Risk

Course level: Introductory

In house

This two-day course includes a thorough disclosure of the analysis techniques required to enable an in-depth and informed examination of a lending proposal to be undertaken. Only through the intelligent application of these analytical tools can the full picture of the risks involved be revealed.  Few businesses survive the ignorance of these methodologies, let alone prosper.

The broad range of financial and non-financial risks is examined, with a heavy reliance on relevant case studies and role playing to highlight the essential credit skills required. The course is designed to take even a fairly inexperienced member of staff to a high level of understanding and appreciation of the subject matter.

The risk elements in third party-introduced business are investigated, as well as managing the relationships with the intermediary sources themselves.

Finally, guidelines on putting all the information together in a coherent format are provided, including persuasive report writing and assuming the role of the underwriter to assess lending submissions.

Objectives

By the end of this course, delegates will be able to:

  • Fully appreciate the major financial and non-financial risks in any lending proposition
  • comprehend fully the main principals of lending
  • display a thorough understanding of the main analytical tools used in financial risk assessment
  • establish a consistent methodology for assessing risk
  • improve the quality of the lending portfolio
  • appreciate the key factors, both internal and external, behind the majority of corporate failures
  • improve key account management
  • demonstrate greater self confidence and credibility in the discussion/negotiation of risk issues with both internal and external customers
  • prepare and present high-quality credit submissions

Length

2 days

Course Content

Legal Entities

Understanding how a business works

Interpretation of accounts
Key ratio analysis – assessing business performance using the power of ratio analysis
Working capital
Cash flow analysis
Key risks facing businesses
Importance of quality management to business success

Principles of lending

Spotting the proposals that should be declined
Danger signals – spotting the financial and non-financial danger signals of businesses in distress

Managing higher risk accounts

Questioning and financial interviewing skills
Vendors/intermediary relationships – managing expectations

Persuasive report writing

Assessing risk and making the investment decision

This course would be suitable for:

  • Finance and accounting
  • New entrants
  • Risk management
  • Sales and marketing

This course would be suitable for these exams:

  • SII IAQ - Operations in Risk
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