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Corporate Credit Analysis & Risk Management Training Course
This training course gives you a step-by-step, systematic and practical approach to credit analysis and credit applications.
Corporate Credit Analysis Training Course Overview
This intensive course provides a step by step, systematic and practical approach to credit analysis and credit applications.The methodology is repeatedly applied to companies operating in a range of different industries.
The focus is on cash flow analysis and the identification of critical success factors.
The impact of Basel II is covered through the assignment of internal and external credit ratings, and the calculation of capital requirements and returns according to the Advanced IRB Approach.
What will you gain from this course?
Upon completion of this course you will gain:- A sound understanding of credit risk, focusing on:
- The nature and importance of credit risk- largest source of bank losses
- The main causes of credit losses and what sound Credit Risk Management entails- best practices of credit management
- Capital requirements-the regulatory framework of Basel I and Basel II.
- The pricing of transactions- why it is a credit risk issue and how it relates to capital requirements and Returns on Equity (ROE)
- The credit risk inherent in the main corporate banking exposures and products, including understanding the mechanics of the products themselves.
- An ability to understand the borrower's business and assess its ability to liquidate the bank's exposure. - Use of industry analysis modules.
- A standard methodology or “recipe” to assess corporate credit risk and submit consistent credit applications.
- Non-financial elements
- Financial analysis-how to analyse financials
- Risk analysis and critical success factors.
- Extend the analysis to corporate finance issues
- Debt versus capital
- Dynamics of mergers and acquisitions.
- Valuation of companies.
Have a question? Email us at:
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or call us at: (+852) 2273-4393Credit Analysis Training Course Agenda
DAY 1I. Credit risk, Capital Requirements, Returns and Pricing
- Definition- comparison with other types of risks faced by banks
- The regulatory frameworks-Capital adequacy requirements
- Definition of capital
- Risk weighted assets.
- How margins/spreads/commissions etc. translate into Return On Equity.(ROE)
- “Hurdle rates”
- Impact on business decisions/allocations of capital.
- Why pricing is a credit issue
- The role of provisions versus capital
Underlying concepts
- Internal ratings and External ratings
- Economic capital
- Expected and Unexpected losses
- Probability of default, Loss Given Default and Exposure at Default.
- Objectives
- The three pillars
- Capital Adequacy Requirements –The 3 Approaches
- Credit Risk Mitigation- Impact of Guarantees, Credit Derivatives and Collateral
- Exercises: calculation of Capital requirements and ROE in the Advanced
IRB Approach.
II. Credit analysis and Credit reviews-Theory
- Objectives
- Sources of information
- Economic fundamentals of the industry/sector
- Financial fundamentals of the industry/sector
- Meaning of financial ratios
- Understanding the approach-cash flow vs. balance sheet.
- Implications on ratio analysis
- Cross- industry ratios comparison
- Critical success factors
- Example: how to analyse a retail company, using the “How to analyse a retail company” module.
- Minimum requirements
- Using the credit analysis template
Case studies are based on real life companies as well as the use of industry analysis modules. Cases are first discussed in groups, then presented to the class and discussed.
All case studies follow the approach outlined in the first case study. In each case, delegates are required to assign internal ratings/external ratings equivalents, use PD’s, calculate risk weights, capital and returns.
Case Study 1- Large retailer
Group work
- Based on the retail industry study, show how the company meets or does not meet the industry critical success factors.
- Using the credit analysis template, draft a summarised proposal, assign an internal/external rating and calculate the bank’s ROE of the proposed transactions
- Compare it with the proposed model credit application.
- Presentation to class and discussion
- The case focuses on critical success factors identification and highlights the risks of over-enthusiastic credit decisions based on a good set of results.
- This South African company is generally awarded an “A” rating by the delegates. Later in the course, it is then compared with “true” “A” companies to provide an international benchmark.
Case Study 3 – Chemical Company
- Based on the chemical industry study, show how the company meets or does not meet the industry critical success factors.
- Using the credit analysis template, draft a summarised proposal, assign a rating and calculate the ROE of the proposed transaction ( Acquisition of another chemical business)
- Compare the conclusions with the company’s performance in subsequent years. What does the cash flow reveal? Management is economical with the truth.
- Presentation to class and discussion
- Four annual reports of international breweries are provided, including
SABMiller. Delegates must identify the industry’s economic and financial fundamentals, the winners and losers and assign external ratings. - The actual external ratings seem at odds with the financial ratios, as highly geared groups with negative net worth still attract investment grade ratings.
- The external ratings assigned by the delegates are compared with the actual ratings.
- Delegates are asked to compare the ratios of 8 international breweries contained in a table and to show how they reflect these companies past activities and how they are an indication for the future.
Case Study 5- High-Tech Company
- This case emphasizes the importance of a sound business model and lending position. The numbers are misleading
- Four annual reports of international airlines are provided, including SAA. Delegates must identify the industry’s economic and financial fundamentals, as well as the different business models.
- Delegates must identify the winners and losers and recommend the financing of an aircraft for one of the companies.
Who Should Attend this Credit Analysis Training Course?
- Corporate & Commercial Bankers
- Credit analysts
- Credit professionals
- Syndications staff
- Trade finance staff
- Project finance staff
- Finance staff from non-banking institutions
Have a question? Email us at:
or call us at: (+852) 2273-4393What do you get from Ethan Hathaway courses?
- Practical. Learn from experienced and active industry practitioners and what's being practiced by your peers.
- Applicable. Apply what you learn in your job and your career
- Specially designed courses by industry active experts for industry practitioners
- Valuable. Earn more revenue or save your organisation from monetary loss. You and your organisation will quickly earn back your investment on the course fee and more
- Enjoyable. Speakers who have a passion for their topic
- Clear. Turning complex concepts into easy to understand concepts
You gain knowledge and skills that make you valuable to your company and your career 
Instruction by industry experts 
Course notes and reference materials package
Daily lunch, snacks and refreshments
Certificate of completion
Meeting your industry peers
Ask questions relevant to your job
Limited seats - each session is limited to between 18-25 seats - Much, much more
Download the course brochure to learn more
Your course instructor
Jean-Charles Pirlet: Jean-Charles spent seven years in the Credit, Corporate and Investment Banking divisions of Citibank, including four years in South Africa and three years in the World Corporation Group in London as Vice-President managing a portfolio of UK multinationals on a worldwide basis.He subsequently worked as Director of Project Finance and Acquisition Financing for Security Pacific in Frankfurt before returning to South Africa in 1993. As Head of Corporate Banking (Senior Vice-President) for the local operation of ABN-Amro, Jean- Charles and his team were voted "Best Corporate bank in South-Africa" in the 1997 PriceWaterhouseCoopers survey. He now consults and trains in the fields of corporate finance, corporate banking and credit risk management, including Basel II.Jean-Charles has broad credit experience gained over 20 years as credit analyst, credit officer and credit committee member at Citibank and ABN-Amro, covering Corporate Banking, Financial Institutions, Structured finance, Leveraged transactions, Asset securitisation and Derivatives.Jean-Charles trains on high level financial courses such as Credit analysis, Credit Risk management, Financial Institutions and Basel II. He trains organisations such as Royal Bank of Scotland, CIBC, Barclays, Investec, Algorithmics and Shell Africa.He holds an LLB and an LLM in Tax Law from the University of Liege in Belgium.
Dates & Locations & Fees
| Date | Location | Venue | Course Fee | Early Bird Fee | Register |
|---|
Early Birds Save Up To 30% Off the Regular Fee, download the brochure to learn more
Limited seats - Email us: for availability.
* Venue, dates, course fees, promotions, course content, course instructor are all subject to change
Can't find a session in a city near you?
If there's no session scheduled in a city near you, you have the following options:
- In-house training: If you have a group of 8 or more, consider having us run this course in-house for you
- Co-sponsored training: Between 5-7 people, consider a co-sponsored course - you agree to send this set number of people to the course if we run it in a city near you and Ethan Hathaway sells the remaining seats to other companies
- Distance learning: Less than 5 people, consider distance training format: live trainer presents over phone lines/web at pre-scheduled times (available only for select courses)
- Just tell us where you want the course: Let us know which city you'd like us to run this course in - we'll plan it if there's enough demand
Email us at: for more information regarding the above options.
Register for the course
You may book your place on the course by any of these methods:
- Online booking - simply click on the "Register Me" button next to the course date you wish to register and it will take you through our quick online registration procedure.
- Email us at: - please include your full contact details.
- Fax us the booking form (included in the brochure) to: +852 3014-0721
- Or call: +852 2273-4393 during normal office hours
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Learn more about this course
Inside the course information booklet you'll find:
- Detailed course agenda of what you'll learn
- Eligible discounts
- Our course quality guarantee
- Course expert biography
- Course venue details
- Cancellation & refund policies
- Course registration form
- Printer-friendly PDF
- Small file size for fast & easy download
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