Training Catalog

Credit Risk and Cash Flow Analysis

Banking

Description

Introduction

Banks play a crucial role in allocating financial resources. Many companies in a country are dependent on the loans and credit facilities that banks provide. Meeting the demand of these companies for financial resources in a sustainable way will support social and economic developments. The workshop is intended to help future and current loan providers, investors and credit analysts to do their job efficiently and thoroughly.

Objectives

After finishing the workshop, the participants should be able to:

  • Systematically determine the operating and financial strength of a specific borrower (a company). Linking operational and financial issues gives a strong analysis and protection against unreliable financials and weak business plans. Finally the participants will be able to judge level and predictability of future cash flows and to assess a risk rating by hand.
  • Help the borrower to set reasonable goals in terms of financial condition and growth and using a strategy when a borrower is facing financial difficulties.
  • Give concise and clear conclusions and recommendations to credit committees/management.
Programme


 

Our goal is to judge the level & stability of future cash flows of a company and to assess its creditworthiness. The following subjects are needed to make this judgment and will be covered in the workshop:

  • Identifying warning signals in the cash flow statement
  • Measuring the debt burden
  • Judging liquidity
  • Preparing a financial projection to assess future cash flow quality
  • Drafting an industry analysis
  • Assessing management quality and reliability of financial information
  • The impact of the corporate strategy and business plans
  • Assessing a risk rating by hand (= not by computer)


WHEN IS THE WORKSHOP NOT USEFUL?

Cases about small, medium-sized and big companies are part of the program. The lessons learned are NOT  useful to analyse every small/micro companies, financial institutions and commodity traders.

DAY 1

The Toolbox

A practical analytical framework for credit analysis that includes analytical tools and technicques

Cash flow analysis

The importance of cash flows, calculating cash flows and identifying warning signals

Debt burden and liquidity

Refreshing this part of financial analysis as well

Industry analysis and "Product Life CycleóCash Flows"

Two useful tools to assess the Business Risks, which is part of the operating strength of a company 

Case "A profitable retailer still going bankrupt"

What went wrong?

DAY 2

Financial projection "Back to the Future"

How to make a financial projection: we go back in time and find a solution on how we could avoid the bankruptcy of the retailer.

Bad Loans: Voluntary Debt Restructuring

The World Bank & U.N. about out-of-court debt restructuring, discussions

Case "A Wholesaler with a Need for Growth"

Will its strategy actually work?

Management's Attitude & Reliability of Financials

Learning an easy and effective tool to assess these items & warning signals

DAY 3

Case "Company Easy Bikes Ltd. is being sold"

Are the financials reliable? What do you think about the business risks? Are the owners "on the hook"?

Maintaining an efficient credit process

Writing tips& how to co-operate

Case "Engineering & Agriculture"

Do we accept this new customer?

Case "Technological Disruption in the Car Industry"

What is the impact on two selected companies?

DAY 4

Case "A Franchise Organisation & Aggressive Management"

Find the warning signals

Parent/subsidiary issues and structural subordination

Theory & small exercises about analysing our priority of claim to the borrower

Case "Change of Ownership of a Transport Company"

Group exercises & presentations to the Credit Committee

Conclusions and Evaluation

Your findings

Target Audience

The workshop is created for professionals involved in extending and monitoring business loans and who are interested in tricks and tips to improve their efficiency. Both senior and junior staff will enjoy the real-life examples and the lively discussions. It is exciting and fun.

Prerequisites: knowledge about the basics of accounting.


Modalities

Exam

No exam is available for this course.

Contact

For further questions please contact our partner in your country


Testimonials

Credit Risk and Cash Flow Analysis

One of the most attractive training courses I've attended. It gives you another perspective on the financial situation of the company and the importance of the cash flow. Very interactive and Useful. 

 

Ledion MALOKU  -  Kosovo

Credit Risk and Cash Flow Analysis

The training was very helpful, we've learned a lot. The trainer was very cooperating with the participants , which made it very easy for us to feel comfortable to talk and ask questions. I really likedd the xperience, since te traiing was everything that we work with. Thank you. 

 

Verona AVDYLI  -  Macedonia

Credit Risk and Cash Flow Analysis

I will recommend this training to other colleagues too because it was very useful and completed with great examples. Also the trainer was very friendly and he really owns this topic. 

Agron ZEKA  -  Macedonia

Credit Risk and Cash Flow Analysis

Very interesting training with a lot of insight and practical analysis. Great interaction with the trainer. I will definitely suggest this training to my colleagues in financial analysis. 

Evgjeni BARDHI  -  Albania

Credit Risk and Cash Flow Analysis

This course was absolutely amazing. Professor used real life examples and emphasized the key issues we should pay attention when analyzing a credit application. I can firmly say that this course has been very helpful which will have an impact in my daily work activities.

Vatra PYLLA SHALA  -  Kosovo