SME Credit Risk Analysis (Intermediary & Advanced)
Target Audience
Corporate Banking Group, CBG Early Warning Unit - Corporate Bankers, Relationship Managers, credit risk officers
Audience Level
Intermediate & Advanced
Duration
3 Days: 9am – 4pm
Delivery
Online or In-class
This workshop has been designed for SME bankers who are responsible for assessing SME corporate credit risk, in the current climate. The programme focuses on the contemporary challenges facing SMEs in the market, exacerbated by both the post Covid business climate of surging commodity prices and supply chain disruptions, further aggregated by the war in Ukraine and its impact on commodity and food import prices.
The programme will also instil in the delegates a systematic approach to evaluating the credit standing of an SME client assessing the relative attractiveness of the risk – return profile of the investing/lending proposition. This course is designed to provide the bank’s credit analyst with an holistic view of credit risk analysis.
We will cover areas that are posing particular financing difficulties to corporate clients because of post supply chain blockages exacerbated by the war in Ukraine, particularly in the food and agribusiness industry.
In response to these current problem areas this course will focus on the following areas:
- Understanding core areas that bankers need to analyse in assessing the credit risks of SMEs
- Gain an insight into the credit rating process of the international credit rating agencies including Moody’s Investor Services;
- Assessing internal rating applications and Fundamental principles of SME credit risk analysis;
- Apply a structured approach to SME credit assessment based on the 4 M’s principle of credit
- Identify Early Warning Signals for SMEs arising from quantitative and qualitative analysis
- Identifying reasons why businesses typically face problems and mitigating potential risks;
- Using the company accounts and financial statements as a means for assessing the credit risk of a corporate client;
- Principle financial ratios and their trends as part of credit risk analysis specifically for SMEs;
- Quantitative analysis of the SME using deficient company accounts;
- Qualitative analysis of SMEs as part of the credit analysis process;
- Assess the methods of qualitative and quantitative analysis used by international rating agencies, such as Moody’s;
- Assessment of the SMEs liquidity position and the impact of working capital management;
- Using forecast cash flows to structure the optimum debt repayment schedule for the SME
- Debt structuring, useful guarantees and the creation of security in debt structuring for SMEs.
Contact Form
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