Advanced Credit Risk Course

Location: London (Central)

Dates: 09.07.2012 - 09.07.2012

Duration: 7h30

Price: 2,900.00 GBP

This course will enable delegates to manage and employ the tools used in credit risk & credit analysis to assess individual, sector and portfolio credit risks. It develops the understanding, implementation and employment of a comprehensive framework to assess the critical risk factors affecting corporate borrowers. The course provides a detailed description of credit risk analysis, shows how it can be managed by an organisation and explores the key components underlying the process. The course also considers managing an expanding business portfolio as well as dealing with the challenges of recoveries. More challenging case studies and exercises are used widely to ensure the training is interactive and practical. Participants will be required to bring a laptop to the course. Learning Objectives: At the end of the course delegates will be able to Manage and contribute to the process by which credit decisions are made and help to decide which critical risk factors are relevant to their marketplace. Work comfortably with annual reports and use them as to assess risk on several levels Be fully conversant with financial statements, their purpose, uses, limitations and relevance. Know what to look for and how to find non-financial factors affecting corporate borrowers Be comfortable with a range of credit analysis techniques including the role, relevance and interpretation of key and other ratios Work with cash flow statements, know what to look for and understand what is relevant from cash flow in a risk assessment Be comfortable assessing specialist lending products including project finance, public/private partnerships, leveraged debt situations and major construction/development deals Have a detailed knowledge of the sources of finance available to companies and understand the relationship between gearing and leverage and how they can be managed to achieve different financial performance and debt servicing outcomes Recognise the challenges involved in expanding a corporate lending business quickly Identify in advance the early warnings of corporate problems and have action plans to tackle them Feel comfortable about a wider range of structured products and some derivatives Methodology: Classroom style lectures featuring intensive use of up-to-date relevant case studies. Highly interactive with delegates encouraged to participate fully Knowledge Pre-requisites: It is expected that participants will have some experience with business and financial services and should ideally have worked in a lending unit. Course categories:Corporate Banking Conferences, Corporate Finance Conferences, Credit Conferences, Corporate Finance Courses, Treasury Conferences, Corporate Banking Courses, Credit Courses, Treasury Courses
COVERED TOPICS

Session 1: Introduction to Analysis Course Objectives Managing credit analysis Setting the objectives and goals of the credit analyst team Detailed approach to credit analysis, including individual, sector and portfolio risk Predicting, managing and trading through Credit Cycles Understanding and employing data derived from probability of default, loss given default and expected loss data Setting the parameters for system analysis Case study/example relevant to above Session 2: Defining credit risk The Basel Accords What is credit risk? The different types of credit risk Sovereign Corporate Retail Systemic Counterparty Concentration risk Expected and unexpected losses Case study/example relevant to above Session 3: Advanced Review of Financial products Loans and overdrafts Government and corporate bonds Equity and mezzanine debt Credit derivatives Counterparty exposure from traded products Trade finance Mortgages Credit cards Case study/example relevant to above Session 4: Advanced Review of Mitigating and Managing Credit Risk The credit time line Bad debt, doubtful debt and default Credit assessments and scoring Corporate credit scoring Retail credit scoring Diversification and portfolio management Securitization Collateral Credit derivatives Netting Cash flow monitoring Recovery management Case study/example relevant to above Session 5: Financial ~Reporting Detailed and in depth look at company accounts focusing on Setting guidelines for key areas to focus on IAS and its implications for credit risk analysis Profit and loss accounts Gearing Liquidity Debt servicing The structure of balance sheets and peer group analysis Managing, assessing and using cash flow statements as a useful analysis tool Interpreting the Directors report Understanding and interpreting the notes to the accounts Case study/example relevant to above Session 6: Financial Risk & Cash Flow Analysis Using ratios as a working tool Quick or rough and ready analysis Setting guidelines for key ratios Understanding cash flow and what it reveals Calculating free cash flow and its relevance Economic returns, Economic capital and building real shareholder value In depth liquidity analysis using ratios and forecasts The importance of positive working capital and the trading cycle Stress testing profitability, gearing and cash flow leading to breakeven assumptions Using selected financial ratios and recommending suitable lists to avoid overkill Case study/example relevant to above Session 7: Valuation Techniques of company valuation Valuations using various traditional methods Valuation as a tool for credit analysis and its relevance Understanding and managing concepts and problem issues Appreciating the real cost of capital Understanding and interpreting free cash flows Introduction to discounted flows, NPV and DCF Case study/example relevant to above Session 8: Control of Assets Pre loan Drawdown Post lending Reporting Reacting Managing Intervention Foreclosure Proposals Case study/example relevant to above Session 9: Credit Committees and Other Risk Controls Credit committee Lending limits and delegations Sanctioning Sector and other controls Liquidity controls Supervision Statutory reporting Case study/example relevant to above Session 10: Pricing & Required Return Risk/reward Secured/unsecured Return on capital Liquidity Short & medium term Head office expectations Case study/example relevant to above Session 11: Sources of funding Current accounts Deposit and term accounts Money markets Inter bank markets Commercial paper Liquidity crisis issues Case study/example relevant to above Session 12: Distribution Channels & Technology Branch network Other organisations Internet Importance Cost Client requirements Management requirements Regulatory Requirements Civil Service model Shareholder expectations Case study/example relevant to above Session 13: Monitoring and Assessing How to establish and manage Exposures Portfolio management, reviews and analysis Internal inspections and reviews –managing the process Setting the parameters for analysis using tiers Understanding and appreciating the different types of security Calculating Exposures statically and dynamically Warning signs and how to manage them Case study/example relevant to above Session 14: Forecasting and Modelling Detailed modelling considerations The management and supervision of forecasting Implementing stress tests and managing the outcomes Case study/example relevant to above Session 15: Structuring Understanding and assessing debt instruments and their relevant merits Supervising and managing documentation issues, covenants and reporting requirements Aggregated structures Debt structures, subordination & insolvency regimes The assessment of collateral and calculating a range of recovery prospects Managing structures and debt capacity to achieve optimum results for all parties Case study/example relevant to above Session 16: Rating Agencies A detailed look at the underlying rationale Recommending systems Understanding the relationship between rating agencies and regulatory issues A detailed look at Basel II and its implications for capital allocation and shareholder value Case study/example relevant to above Session 17: Measurement of Credit Risk Designing and implementing credit risk measurement systems A detailed understanding of Credit Scoring systems Designing and implementing a credit quality monitoring process Understanding debt instruments both on and off balance sheet Case study/example relevant to above		Session 18: Non-Financial Analysis Taking a macro and micro view of sector, industry & economic factors Using Porter’s model as a management tool Understanding and managing the key market forces in your marketplace Designing and managing corporate strategies The significance and effectiveness of corporate structure The helicopter view Case study/example relevant to above Session 19: Financial Distress What to look for and how to establish systems that flag up automatically Designing a referral process Allocating responsibilities for action Dealing with difficult or intransigent clients Implementing recovery systems Analysing recovery systems and outcomes Learning lessons and building past experience into current thinking Case study/example relevant to above Session 20: Calculating credit risk capital under Basel Risk-weights and risk-weighted assets Credit risk and Basel I Ratings and rating agencies Basel II and rating agencies The approaches for measuring credit risk capital Obtaining approval for using a measurement approach Data requirements and issues Case study/example relevant to above Session 21: The Standardised Approach The nature of the Standardised Approach The Standardised Approach’s asset classes and risk-weights Off-balance sheet items Difference between Basle I and Basel II Case study/example relevant to above Session 22: The Internal Ratings-Based approaches The nature of the IRB Approaches The IRB approaches and asset classes The IRB parameters Foundation based IRB Approach The Advanced IRB approach Backtesting The usage test Case study/example relevant to above Session 23: Securitization and credit derivatives The nature of securitization True sale The role of banks Securitization under Basel II The Standardised Approach The Rating-Based Approach The Supervisory Formula Internal Assessment Approach Case Study: The treatment of credit derivatives Session 24: Collateral Haircuts Collateral under Basel II The effect of collateral on credit risk capital The Simple Approach The Comprehensive Approach The Advanced Comprehensive Approach Case Study Session 25: Project Finance Characteristics Viability Financial analysis Project Evaluation Structures Programmes Monitoring Pricing Controlling Case study/example relevant to above Session 26: Public Private Partnerships Characteristics Purpose & Objectives Financial analysis Project Evaluation Structures and policy considerations Monitoring Pricing &Controlling Case study/example relevant to above Session 27: Leveraged Debt Characteristics Level 1, 2 & 3 Mezzanine finance Management Buy Outs Cash flow lending The role of the incumbent management team Track record of Leveraged deals Loss mitigation Control Pricing Case study/example relevant to above Session 28: Construction/Development Characteristics Structure Lending appraisal The importance of independent professionals Control, release and monitoring Calculating exposures and security What to do when it goes off plan – all of them usually do Pricing Controlling repayments to leave least saleable assets with client, not the bank Case study/example relevant to above

REGISTRATION & PRICING INFORMATION

1-2 participants - full price
3-4 participants - 15% discount
5-6 participants - 20% discount
7-8 participants - 25% discount
Over 9 participants - 30% discount

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Price: 2,900.00 GBP
Location: London (Central)
Event date: 09.07.2012 - 09.07.2012
Event duration: 7h30
Event time: 09.30 h - 17.00 h

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Email: info@financialveritas.com

Phone: +44 208 133 5917

Advanced Credit Risk Course

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