Corporate and Commercial Banking
Content
This program provides participants with a comprehensive overview of early warning sign analysis, together with a road map of the proactive steps to be taken by a bank in limiting downside risk when a credit begins to deteriorate.
In addition, the rights of the bank in managing deteriorating credits will be closely examined together with effective strategies for managing such situations prior to filing for bankruptcy.
- Warning Sign Identification: Proactive financial analysis in helping forecast how warning signs can lead to financial deterioration and loss of value
- Identifying Management’s Weakness: Identification of financial analytical skills needed to uncover management weakness, with a particular emphasis on steps management needs to take to remedy operationally and financially a deteriorating situation
- Proactive Risk Management of Early Warning Signs: Review of the legitimate steps which the bank can require the borrower to take to avoid further financial deterioration
- Restructuring Techniques in Managing Deteriorating Credits: With an emphasis on how such restructuring steps are incorporated into loan and security documentation
- Value Creation Strategies: Strategies to be adopted as a company emerges from a workout scenario highlighting how the bank’s recommendations bring value to the company’s owners
Methodology
Using practical examples within the bank, the program will reinforce the risk management culture within your bank when addressing how to handle a deteriorating credit.
Specific techniques for risk management will be reviewed together with an examination of first, your bank’s role as a creditor when the loss of principal becomes a distinct possibility, and, second, in a consensual workout, developing appropriate value creation strategies for both the client and the bank.