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Credit Risk Management


With the constantly changing – or weakening – economy, Credit Managers are faced with a deluge of data which must be analysed, summarised and disseminated. Southern Africa has recently been readmitted to the world of exporting and foreign exchange, opening new challenges to Credit Managers.

How do Credit or Loan managers go about assessing the risk of lending their company’s money to a customer? This Skills Based Training Course has been designed to equip personnel responsible for the assessment of risk with the necessary skills to determine, accurately, the risk factors of their customers and clients.

The following subjects are covered in the course:

Reasons for increase in Risk

Increasing competition
Mergers to gain market share
Reduced staff numbers
Increase in customer sophistication
Increase in complexity of products
Difficulty in obtaining competitive advantage

The objectives of the Credit or Loan Manager

Helping customers
Developing business
Making profit and containing losses

Lending

NAME lending
ANALYTICAL approach
“Going Concern”
“Gone Concern”
The “Canons” on lending
Small business credit risks
Use is made of a Case Study

Risk

Seven C’s of Credit
Understanding Business Risk
Framework of a Business Analysis
         General economic and related risks
         Competition – current and expected
         Management quality
Business Activity
External Influences
Labour Supply
Technology
Market/product life cycle
Understanding competition
         Price
         Differentiation

Analysing competitive markets

Determinants of profitability

Competitive rivalry
New entrants into the market
Power of the buyers
Power of suppliers
Substitute products

Assessing management ability

Unveiling the Mystique of Cash Flow Analysis

What is Cash Flow Analysis?
Developing a Cash Flow Summary
What does the Cash Flow Summary tell you?
Interpreting the Cash Flow Summary
Interpreting company forecasts

Practical Session:

Extracting a cash Flow Forecast

Using Ratios for Analysis

Developing a Framework
         Growth
         Profitability
         Asset Intensity
         Equity Return
Annual Sales Growth
Profit Margin
Return on Funded Assets
Stock days sales outstanding
Debtors days sales outstanding
Creditor’s days’ sales outstanding
Net working assets percentage
Tangible Asset Intensity
Average asset age
Gearing
Total balance sheet leverage
Interest cover
Return on equity
Price/Earnings ratio
Economic Value Added
Liquidity Ratio
Acid Test

The Role of Financial Analysis in Corporate Credit Assessments

Overview of Corporate Credit Assessment
Key Requirements in Credit Assessment
“Gone Concern” Assessment
“Going Concern” Assessments
Financial Versus Non-financial Assessment

Practical Session:

Analysis of Small to Medium Business

Analysis of Large Multi-national

Course Fees

The all-inclusive cost for these courses are as follows:

Credit Risk Management R6 900,00

Once the learner has registered and paid the prescribed fee, course notes will be sent electronically.

Distance learning

The course content is directed towards outcomes-based education. For this reason, delegates are consistently evaluated by workbooks submitted during the course to ensure that they have assimilated the subject to a satisfactory degree and will be able to perform the tasks taught.

In-house Presentation

The course can be presented to companies for the benefit of their staff. Because of the required Skills Based content of the course, information presented is tailor made for the company for which the course is being presented.

Ideally, the course should be presented away from the normal working environment of the employees, thus eliminating interruptions and distraction from their daily workload. To facilitate interaction, the total number of delegates attending the course should not exceed 30.

Each delegate will be handed a full and comprehensive set of reference notes. The study material is copyrighted to PBS College.

In-House Fees

Individual quotations will be given as the fee depends on the number of delegates attending the course. Costs and expenses are for the company for whom the course is being presented. These costs include the following:
The venue, which should preferably be away from the normal working environment of the delegates attending the course;
Tea/coffee, refreshments and lunches (if required);
Flip chart and pens;
Travelling and accommodation of the presenter of the course if presented outside Gauteng.

Time and duration

This course is an outcomes-based course. Learners studying via distance learning submit workbooks on which they are assessed. It is necessary to obtain at least 50% on every workbook to qualify for the Credit Rik Management certificate.

In-house the learners are assessed during the two days of the course and qualify on outcomes-based assessments for the Credit Risk Management certificate.

Course Fees

Standard fees for the two days are R6 900 per delegate. Special discounted rates for more than four delegates from the same company can be negotiated. This fee includes a comprehensive reference manual, secure parking on the premises and all tea/coffee and lunches for the two days.

Accreditation

This course and its notes and contents is accredited by the Institute of Credit Management Africa. On completion of the course, delegates will be issued with a PBS College attendance certificate on which the accreditation and appropriate logos are depicted.

Course facilitators

Kevin Midgley was born and raised in the Republic of South African.

He studied and obtained the Master of Business Administration (MBA). His career has always been in education and training. He has been a senior lecturer at the following institutions:
Damelin Education Group;
Varsity College and
Regenesys Business School

He has presented various public and in-house training courses throughout South Africa to several large corporations. He is currently actively presenting courses, both face-to-face and distance learning.

He is a subject matter expert and has been contracted to present and design the following courses:
Business Management
Business Administration
Business Communication
Business Strategy
Credit Management
Human Resources Management
Change Management
Office Management
Retail Management
Events Management
Public Management
Public Policy Management
Quality and customer relations
Sales and negotiation

He has authored “The Credit Controller’s Handbook” – self-published – September 1999. Second Edition – June 2002. Third Edition – March 2008.

Registration Form - Skills Courses

Please complete the form below. If you have any questions please contact us on +27 11 781 9727 or pbs@pbscollege.com
Once we’ve received your application and your payment has cleared, we’ll send you a confirmation letter and course material, as well as any other relevent information.

Learner Personal Details

Who is responsible for payment of the Invoice?

me personally

a sponsor

I accept the enclosed Contract Provisions

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Acceptance of Contract Provisions:

I, the learner, hereby accept and agree that:

  • I am signing this contract with the knowledge and consent of my natural guardian (if applicable)
  • Submission of this registration form constitutes an agreement that binds me to attend and pay for the course/courses as indicated above.
  • Monthly payments are due by the 1st working day of each month.
  • Registration fees are not refundable, but will be deducted from course fees.
  • Interest will be charged on overdue accounts, at prime plus 2 % as stipulated by ABSA Bank.
  • Either party may cancel this agreement within 4 weeks of registration date on the condition that no material has been sent. The moment material is made available to the learner, this agreement stands. If the learner cancels, he/she is liable for one month’s payments, irrespective of the date of cancellation. Any cancellation after the four week period will incur the full course fee
  • In the event of non-payment of any amount due and payable on the due date, PBS, in addition to any other remedies it may have in terms of this agreement or under law, may:
  • Terminate this agreement without notice and keep all amounts already paid, and/or
  • Claim mages (which may include immediate payment of all arrear payments) and/or
  • Suspend the learner for non-payment, and/or
  • Claim the full amount of the contract, which amount shall become immediately due and payable.
  • All fees to be paid in full before examination entry will be granted.
  • I consent to the jurisdiction in terms of section 45 of the Act that an legal proceeding arising from this agreement may be instituted in the Magistrates Court of any district with jurisdiction in terms of section 28 of the Act.
  • Should legal action be instituted, any legal costs incurred by PBS shall be Bourne by me on the attorney/client scale
  • I choose as my domicillium citandi et executandi the address set out above
  • I hereby declare the above information to be true and accurate, and enrol as a student of PBS College (Pty) Ltd. I understand that I need to pay or make arrangements to pay all fees for my studies prior to receiving my study material.

I, the sponsor, hereby accept and agree that:

  • All the terms and conditions of the agreement between the learner and PBS shall mutatis mutandis be binding on me
  • In addition thereto I hereby bind myself as surety and co-principal debtor for the learner in favour of PBS for the payment of al sums of money with the learner may now, or in the future become indebted to PBS arising for whatsoever cause.
  • I further confirm that I am/am not married in community of property

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