Corporate Credit Risk
Analysis - Corporate Risks,
Cash Flow & Projections

17 – 20 May 2022 Sandton Centre Johannesburg South Africa

Register Now! Limited Seats Available!

Public R15, 999.00

Online R9, 999.00

Online R9, 999.00

Public R15, 999.00

Online R9, 999.00

Course overview:

This intermediate level Four-day course develops a greater understanding of more complex accounting and analysis areas and the operating dynamics of companies. It provides an in depth coverage of business models and corporate strategy in the context of economic cycles, management capacity, competition, technological change and risk, with extensive use of case studies and workshops.

Who Should Attend:

  • Debt Originators in corporate banking, structured finance, acquisition and leveraged finance
  • Credit/Risk Professionals
  • Credit Risk Analyst
  • Portfolio Managers
  • Senior finance Managers
  • Investment Advisors/Managers
  • Credit analysis
  • Investment analysts

Course Outline:

  • Framework for Credit Analysis
  • Components of credit analysis: assessment of management, analysis of a company’s ability to repay and protection for the lender; collateral and covenants
  • Risks to the Business
    • Macro factors: political, economic, environmental and demographic
    • Industry factors, e.g.: Growth trends, exposure to economic cycles, barriers to entry and regulation
    • Corporate specific risks, e.g.: Product/geographic diversification, support levels, strength of major customers and suppliers
  • Tools for Evaluating Corporate Strategy
    • PEST Analysis
    • Product mission matrix
    • Market life cycle
    • Product portfolio matrix
    • Porter’s model of competition
    • SWOT analysis
  • Analysis of the Financial Statements
    • Accounting principles
    • Overview of main differences between UK GAAP and IFRS
    • Critical areas for review in the financial information
    • Review of balance sheet and profit and loss account
    • Off-balance sheet items
    • Adjusting the accounts for analytical purposes
    • Areas of flexibility in accounts, e.g.: Off-balance sheet financing, stock values, capitalisation of expenses and revenue recognition
  • Understanding the Business
    • Interpretation through ratio analysis
    • Liquidity and the cash cycle
    • Working investment as a measure of liquidity
    • Identifying company dynamics
  • The Dynamics of Cash Flow
    • Construction and format of cash flow statements
    • Understanding and interpretation of cash flows
    • Calculation of free cash flow
    • Debt capacity
  • Forecasting
    • Uses as a management tool
    • Forecasting key assumptions
    • Projection of the balance sheet and profit and loss account
    • Forecasting cash flow
    • Sensitivity analysis
  • Corporate Failure
    • Identifying warning signs
    • Reasons for corporate failure
    • The critical role of management
  • Collateral Supporting the Debt
    • Why take collateral?
    • Priority of creditors’ claims
    • Insolvency law and how it affects lenders’ rights
  • Covenants to Protect the Lender
    • Affirmative/negative covenants
    • Financial covenants
  • Structural subordination

End of the workshop

IN HOUSE AND ONLINE TRAINING

While both In-House and Online training can present with cost-effectiveness and time-efficacy, there are some very specific differences between in-house courses and those based online.
The demand for additional courses by individuals or groups of people is increasing. Still, it depends entirely on the preferences of a person what type of training he or she wants to receive. Online courses and in-house training carry some similarities but they are considered to exhibit some very pivotal differences too. Despite that, both types of learning can be really beneficial for attendees.

For Registration and other Training arrangements,
contact us on the detail below.
SOUTH AFRICA Tel: +27 11 057 6001
KENYA Tel: +254 11 353 1082
WhatsApp +27 79 574 0389
info@bmktraining.co.za / www.bmktraining.com