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Financial Ratios and Credit Risk

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Product Code: TC/05

This course has been designed to impart basic knowledge on 'credit risk analysis', the important element in any lending decision.
The course is relevant for both, Credit Risk personnel as well as any Relationship Manager. For the Credit Risk people, it helps form a clear framework of business risk, financial risk and management risk analysis so that it can be adopted at enterprise level. For the Relationship people, it helps to quickly filter out the credits that will meet their internal guidelines so that they can use their time efficiently.
The course on 'Financial Ratios and Credit Risk' delivers knowledge on fundamental concepts of credit risk through a step-by-step understanding of the financial ratios and cash flows so that the finance officer understands the financials of the company better. The next steps are the assessment of business risk, industry risk, management risk and various other / related factors. These are introduced through a case study approach.

$60.00
This course has been designed to impart basic knowledge on 'credit risk analysis', the important element in any lending decision.
The course is relevant for both, Credit Risk personnel as well as any Relationship Manager. For the Credit Risk people, it helps form a clear framework of business risk, financial risk and management risk analysis so that it can be adopted at enterprise level. For the Relationship people, it helps to quickly filter out the credits that will meet their internal guidelines so that they can use their time efficiently.
The course on 'Financial Ratios and Credit Risk' delivers knowledge on fundamental concepts of credit risk through a step-by-step understanding of the financial ratios and cash flows so that the finance officer understands the financials of the company better. The next steps are the assessment of business risk, industry risk, management risk and various other / related factors. These are introduced through a case study approach. 
1. E-learning course (duration 5 hours), 
2. Online Test (25 questions out of a large question bank), 
3. TrainingCentral Certificate on getting passing marks
 

Chapter

Title 

Description

0

Course Objective

  • What is the source of information?
  • What is the industry?
  • What is the Management outlook?

 Personal investment and what all can go wrong?

 The course will take the learner through an interaction with the experts, to assess  the understanding on critical areas.

1

Introduction to Credit Risk analysis

  • Basic concepts of credit risk, why credit risk is important, factors that drive an entity to default, key elements of credit risk analysis
  • Framework for analysing credit risk.
  • Unique aspects in assessing credit risk of an SME

2

Financial risk analysis

  • Key financial ratios to be analyzed from a lender’s perspective for an SME.
  • Commonly used ratios, how to compute these ratios, relevance of these ratios and what is ‘acceptable’ level for each ratio.
  • Working capital cycle – tracing the cash cycle, computing key ratios
  • Qualitative aspects of financial analysis – assessing for future performance, financial flexibility.
  • How to deal with ‘doctored’ financial statements?

3

Walk-through Case study on Financial risk analysis

  • Course test with walk-through the participants on a live case study – Annual report, compute key ratios, form a preliminary credit opinion

4

Case study

  • Annual report, form groups for computation of key ratios and form an opinion on financial risk

5

Business risk analysis

 

  • Importance of Business risk analysis, identify key factors that drive business
  • Use of tangible parameters to measure business risk profile of SMEs - product profile, value addition, customer profile, competitive scenario, track record, key growth drivers
  • Live examples of SMEs with strong and weak business position

6

Credit risk analysis

  • Other elements of credit risk analysis viz. promoter / management profile, parent/group support
  • Importance of security / collateral
 

Summary and Quiz

  • Summarize the key learnings for the course
  • Quiz in multiple choice questions format to validate extent of understanding

 

• For professionals working in the Credit department of Banks and NBFCs and seeking an insight into the credit evaluation process for corporate and SME loans
• For a person seeking a career as a either of the following – 

- Credit Executive, 

- Credit Relationship Manager, 

- Bank back-office Credit Operations executive, 

- Bank Manager, 

- NBFC Credit Executive for Corporate Products, 

- NBFC Corporate Credit RM, Financial Institution Executive

 
  • Once you have purchased this eCourse, you will receive an Order Confirmation on your registered email id from shop@onlinevarsity.com.  
  • You will receive an activation email from "TrainingCentral Solutions" with details on how to activate your course within 72 hours.
Mr. N. Muthuraman, B.E, IIM (B), ex-Director, CRISIL, Co-founder, Riverbridge Investment Advisors Pvt. Ltd
Mr. N. Muthuraman has handled credit rating assignments across various sectors and has been a voting member of CRISIL’s rating committee. He was also in charge of CRISIL’s Executive Training business and was involved in CRISIL's training initiative for many years, conducting several training sessions in India and abroad. During his 12-year stint in CRISIL, he has been also deputed as Technical Consultant in establishing a start-up rating agency CariCRIS at Port of Spain, Trinidad.
 
With over 14 years of experience in the financial markets in India and abroad, Muthuraman has a keen insight in the financial domain. He has a deep understanding in the areas of Business plan preparation, financial forecasting, credit risk evaluation, financial valuation and capital structuring.
 
Muthuraman is now the Co-founder of RiverBridge Investment Advisors Pvt. Ltd, a financial consulting and investment banking firm with focus on assisting SMEs (small and medium enterprises) to access mainstream capital sources, including venture capital, private equity and identifying strategic investors.

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