The Credit Analysis Training (CAT) Program covers the most critical knowledge and skills needed for any credit analyst. The program is focused on preparing participants to get into the role of credit analyst and be world-class financial analysts. The nine days program will offer guidelines to assess credit and prepare credit applications for approval. The program will focus on successfully identifying and differentiating good loans vs bad loans and minimizing risk and losses. It will further emphasize best practices for preparing a written credit proposal from start to finish.
The lenders use the five Cs of the credit system to determine credit worthiness of borrowers. The five Cs of credit are character, capacity, capital, collateral, and conditions. To put things in perspective, the facilitator will use real-life examples.
Module 1: Introduction to Risk
What is the risk? Why do firms manage risk? This module will introduce the different business and financial risks types, their sources, and best practice methods for measuring risk. It shall help participants gauge different risk types and set risk limits, describe the key factors that drive each type of risk, and identify the steps needed to choose probability distributions to estimate risk.
By the end of the course, participants will have the essential knowledge to measure, assess,
and manage risk in an organization. This module will focus on the following:
Module 2: Credit Decision Framework
One of the most common risk appetite challenges is data quality and integrity to establish a clear understanding of risk appetite based on measurable metrics and make fair, timely, and accurate credit decisions. This module will focus on the following:
Module 3: Working with Financial Statements and their Limitations
Corporate financial reports are formalized statements of where a company’s funds come from, how it spends its money, and how the funds flow through the various parts of the company. Financial statements provide a great deal of information to analysts seeking to better understand a company’s business operations.
However, those same reports can also obscure a great deal of activity. Analysts and investors need to understand the limitations of financial statement analysis. This module will help participants understand
Module 4: Purposes of Borrowing and Types of Facilities
While raising equity (using IPO, FPO, or convertible securities) remains one method to raise funds for a company, business owners prefer raising debt as it helps retain their control over the business. Such a decision depends on the sufficiency of cash flows to service the interest and principal payments. A highly levered company may burden the company’s operations and stock price. Consequently, the payment terms, the interest rates, the collateral, and the entire the negotiation process of every loan remains the key to devising the capital strategy of a company.
This module will focus on the following: