Today’s business environment is subject to continuous change – on legislative, technological, environmental (internal and external) and other levels. This influences risk within the business environment, including credit risk. The effective management of credit risk is dependant on, inter-alia, the skills levels and competencies of the people that are assigned this responsibility within an organisation.
The delegates bring a wide variety of experience and resources to the course. The facilitator will help delegates learn for themselves and assist them as they make sense of new ideas and techniques that can be practically applied within their working environments. The course will use a range of learning styles, but the principal approach that will be taken is experiential learning, i.e. learning things through practical application within a workshop-type environment.
Practical sessions will be used to ensure maximisation of skills development to provide delegates with the opportunity to experiment and try out new skills and understanding, before finally deciding how to apply and integrate the learning into their workplace activities.
OBJECTIVES OF THE COURSE
- Analysing financial statements to support credit risk assessments
- Assessing credit risk using non-financial information
- Understanding the credit assessment process within the specific business environment
- Utilising programs, principles and tools to evaluate credit risk and enhance debt collection
- Using securities to minimise exposure to credit risk
- Managing credit control performance using systems and measurements
- Formulating an organisationally supported credit management policy
- Credit management within a broader strategic context
- Formulating credit management strategies that support organisational objectives
PROGRAMME
THE USE OF FINANCIAL STATEMENTS IN THE ASSESSMENT OF CREDIT RISK
- Establishing familiarity with financial statements – the Balance Sheet, Income Statement and Cash Flow Statement
- Use ratio analysis to review past or future financial performance in assessing credit risk
- Capitalise on the use of failure prediction modeling in credit risk assessment
THE USE OF NON-FINANCIAL INFORMATION IN THE ASSESSMENT OF CREDIT RISK
- Macro-environmental impacts
- Global influences
- Business growth and the economic business cycle
- The product life cycle
- Using strategic management tools in managing credit risk
LEGISLATIVE COMPLIANCE
- The National Credit Act
- The Promotion of Access to Information Act
- The Insolvency Act
CREDIT EVALUATION
- Conducting credit evaluations
- Using scoring systems in evaluating credit
- Using matrix systems to ensure consistency in credit evaluations
MANAGING RISK EXPOSURE
- Using securities in credit evaluation
- Understanding procedures associated with securities evaluation
- Using matrix systems to evaluate securities
INTERNAL CONTROL AND AUDIT SYSTEMS
- The need for internal controls
- Key systems to avoid fraud
- Document retention procedure and policy
FORMULATING CREDIT MANAGEMENT POLICIES
- Guidelines for granting and regulating client credit
- Key aspects to consider in drafting a credit management policy
FORMULATING CREDIT MANAGEMENT STRATEGIES
- Integrating client risk profiles in the marketing / sales strategy
- Supporting the effectiveness of the sales department
MEASURING THE EFFECTIVENESS OF YOUR CREDIT ENVIRONMENT
- Using established indices to evaluate individual performance
- Measuring the performance of the credit control environment
IMPROVING CREDIT RISK MANAGEMENT EFFECTIVENESS
- Minimising bad debt exposure
- Managing client relationships to create a competitive edge
ABOUT YOUR EXPERT PRESENTER
Peter Hofmann is an executive director of MFX Options and Solutions, specialising in strategic corporate consulting, operational management and financial management and system design. He established and built up successful departments in financial, logistical and general business management and focused human resource services, and was responsible for, amongst others, financial and logistical operations and management, remuneration processing and executive management and Board liaison. In addition, Peter was responsible for business process design and re-engineering, and end-user training on a SAP R/3 system implementation. His exposure to the holistic business environment, together with his technical expertise and abilities in system design provided a basis for product development for financial solutions targeted at small entrepreneurial businesses, and a platform for high-level strategic management consulting within the corporate business environment.
Peter's integral involvement with projects undertaken by MFX Options and Solutions (Pty) Ltd has facilitated the success thereof. Projects undertaken by MFX Options and Solutions have included:
- Strategic business plans, functional plans and processes, supply chain management strategic planning and ERP process analysis for implementation of an ERP system.
- The development and implementation of performance strategies for business units, comprising of individual projects – SAP HR, finance, supervisory development, internal communications systems and procedures.
- Development of five-year strategies on an annual basis, customer surveys and measurement, business unit strategies and electronic customer-focused marketing campaigns.
- The development of performance related communication strategies and strategy implementations.
