Business and Community Banking
Content
This program provides participants with an overview of the key considerations which drive the operating performance of any business, with a particular emphasis on the risks which undermine the creditworthiness of the business.
- Business Profiles: Review of different types of businesses in Business and Community Banking with a particular focus on small and medium sized enterprises (SMEs), including manufacturers, wholesalers and distributors, and service businesses
- Key Business Drivers: A review of the borrower’s competitive landscape, market dynamics, customer relationships, supply chain management, and relative pricing power in its market
- Industry Risks: Economic, cyclical, seasonal as well as those industry drivers over which an SME borrower has no control – commodity prices, FX movements, and regulatory interference
- Markets and Competition: Identifying the SME borrower’s particular specialty or niche role in its industry, with particular emphasis on its competitive advantage
- Assessment of Management: A review of existing management, their economic interest in the company, their management succession plans, and in particular management’s proven ability to manage for the industry risks in general, and the business risks in particular
Methodology
Using real life case examples taken from general manufacturing, wholesaling and distribution, and service industries, the program will comprise a series of group exercises aimed at evaluating and articulating their respective business risks.
The program will provide a framework for business risk identification and how such risks can be managed internally by good management and monitored and controlled externally by good lending practices.