SME Holistic Credit Risk Analysis

The principal objective of this workshop is to provide delegates with a developed, 360 degrees view of best practise corporate credit risk assessment in lending to SME companies.  The delegates will apply a new framework of SME credit risk analysis developed and applied by JBS Training & Consulting, comprising the Four Ms of corporate credit analysis. Central to the course, the delegates will learn how to apply a series of models and techniques to assess the overall success of the client company, from a business perspective. Included here will be a review of the major strategic and operational risks that can impact the SME’s ability to service its debts, through operating cash flow.

We will also assess best practise mitigation of those risks to protect the interest and exposure of the bank. Included in the analysis of strategy will be a development of how companies can promote their critical success factors to achieve strategic advantage.

• Providing and in depth understanding of the principals of credit risk analysis in SME companies.
• Introduction to the use and application of JBS Training’s 4Ms of credit framework to effective, holistic, corporate credit risk analysis for SMEs
• Assessing developed quantitative and qualitative analysis in assessing SME credit risk ;
• Assessing the strength of SME client liquidity and generating internal sources of liquidity
• Understanding how management control their working capital financing and how this can impact on the company’s overall liquidity and SME credit risks
• Review of methods in which the bank can secure its working capital financing and how it can work with the SME to plan for financing growth in the SMEs business;
• Understanding the importance of strategic risk and its impact on the company’s ability to honour its debt service obligations;
• Understanding different strategic options to exploit SME critical success factors;
• Understanding the need for effective SME management and spotting management risk;
• Applying effective management due diligence techniques in SME credit analysis;
• Using cash flow forecasts to identify SME credit sensitivities and credit risks and the SMEs ability to honour its debt service
• Reviewing key covenants, pledges and security that should be included in the debt structuring for SME debt structuring.