The ICAP Risk Training Institute and the Centre for Lifelong Learning of the University of Piraeus create for the first time a series of integrated professional Mastering programmes for Credit Risk Management Executives.
The thematic areas of Mastering Credit Risk, the training method, examinations, and accreditation by the University of Piraeus guarantee the provision of essential and practical knowledge, with the sole purpose of upgrading the role of credit management executives, which involves better cash flow, collection, and profitability results for companies.
1. Financial Statements Analysis
- ROI
- Profit margin
- Turnover ratio
- Effective inventory and credit management
- Liquidity
- Indebtedness (Debt-to-Equity Ratio)
- Margin of safety
- Makeup of assets
- Finance structure
- Sources of capital
- Uses of capital
- Capital flow tables
- Working Capital Management
- Turnover Break-Even Point
2. Financial Management
Description
The aim of the seminar is to cover the basic principles of the financial management function of an organization. Emphasis is placed on the framework of the financial system, within which, today's businesses operate, as well as the concept of the time value of money, investment and finance decisions made by companies, evaluation of investment plans in a state of uncertainty, and accurate evaluation of property assets, in which, companies invest.
Target Audience
- Entrepreneurs
- Financial Management and Credit Control Executives
- Business Management and Marketing Executives
- Supply Chain Executives
- Project Management Professionals
- Internal Auditors
- Executives other than Financial Managers who should be aware of the financial situation of their company, or want to be able to understand and interpret the financial statements of other companies, such as customers, suppliers, rivals, etc., in order to make well-grounded decisions.
- Human Resources Management Professionals
- Legal Professionals
Subject Areas
- Objective and functions of Financial Management
- Value of money over time
- Concept, types, utility, and nature of fixed investments
- Calculation of various types of cash flows (FCFE, FCFF)
- Investment evaluation methods
- Investment budgeting
- Share capital
- Capital structure
- Leasing
- Bond loans
What you will learn
- You will improve your knowledge on accounting and financial information systems, as well as the concept of financial reporting.
- You will better understand the financials of a company, in order to be able to make better managerial decisions.
- You will consider the economic impact of your suggestions and decisions
- You will understand the importance of the Budget and cash flows
- You will be in a better position to participate and communicate in 'financial terms'.
- You will be able to cooperate more effectively with other offices and departments on financial issues.
3. Introduction to Credit Risk Analysis
Description
The aim of the seminar is to provide essential knowledge to define, evaluate, and rate credit risk, which results from credit offered to existing or new customers-companies, for early diagnosis and taking necessary action, in order to secure credit transactions.
Target Audience
- Entrepreneurs
- Financial Management and Credit Control Executives
- Business Management and Marketing Executives
- Supply Chain Executives
Subject Areas
-
What is credit
-
How the credit market works
-
Advantages of credit
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Disadvantages of credit
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Banks and lines of credit
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How credit risk is generated
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The 5Cs of credit risk
The role of credit risk management
- What is credit risk management
- How credit risk management differs from credit risk analysis
- The structure of credit risk management
- The objectives of credit risk management
- The process and stages of credit risk management
Credit Policy
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Credit risk rating scale (examples of Moody’s, S&P & IBHS)
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Estimating the probability of default for a company
-
Setting credit limits in practice
-
Running the Credit Control Department
-
Human resources
-
Computerization
-
Data collection
-
Customer evaluation and selection
-
Financial behavior ratios
-
Scorecards
-
Altman’s Z-score
-
Customer follow-up
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Staff training
-
The role of the collection manager
-
Credit management rules
-
Internal Audit
-
Efficient collection of receivables
-
Collection of overdue debts
-
Tools to secure receivables
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Credit risk collaterals
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Credit insurance
-
Credit risk pricing
What you will learn
- You will become familiar with, and appreciate the importance of the credit cycle
- You will better understand the current state of credit markets
- You will understand more the importance of evaluation in credit analysis and learn relevant (evaluation) ratios and models
- You will improve the forecasting ability
- You will learn more about the relationship between the qualitative and quantitative aspects of credit analysis.
- You will become familiar with the calculation and interpretation of key financial ratios that are used in the credit rating process that is followed by recognized rating companies
- You will become familiar with various tools of the market
- You will be able to evaluate the Credit Policy and make remedial decisions
4. Credit Risk & Enterprises
Description
The aim of the seminar is to present up-to-date Credit Risk evaluation techniques and clarify the characteristics, on which, it relies either directly or indirectly.
Target Audience
- Entrepreneurs
- Financial Management and Credit Control Executives
- Business Management and Marketing Executives
- Supply Chain Executives
- Business loan managers
- Investment Bankers
- Economic Analysts
- Credit Analysts
- Risk Officers of Banking and Credit Institutions
- Banking Finance Analysts, Lecturers, etc.
Subject Areas
Long-term risks
- PESTEL analysis
- Key Macroeconomic indicators:
- Government spending
- Investment (Foreign Direct Investment-FDI)
- Exports versus imports
- Monetary policy
- Social-demographic issues
- Technology
- Environment
- Legal-regulatory issues
- Business cycles
Industry/sectoral risks
- Product life cycle
- Understanding the operation of each industry's market -
What are the key-drivers that govern the industry?
- Competitive strategies
- Profitability
- Working capital requirements
- Capital expenditure
- Asset conversion cycle
- Different types of manufacturing
- Understanding competition
- Porter's five forces model (Tool for evaluating the competitive position of a company)
Corporate risks
- Understanding the company's business model
- What drives its revenues and costs
- Business operations
- Key Performance Indicators - (KPIs)
- Strategic analysis:
- SWOT Analysis
- Ansoff Matrix
Credit Risk Management Case Study
- "TradeCo" Corporation
- REVIEW OF RECORD OF COOPERATION
- Preliminary Credit Approvals
- Collaterals
- Business Data
- Overdue Debt Analysis
- RECORD OF DETERIORATING COOPERATION
- RECEIVABLES SETTLEMENT AGREEMENT
- PRELIMINARY NEGOTIATION STAGE
- What is requested:
- To determine the approach/strategy to be chosen
- To determine specific recommended legal or business action, and justify their selection
What you will learn
- To identify short-term and long-term industry/sectoral and corporate risks
- To implement a structured approach on evaluating the corporate credit policy
- To calculate and interpret key financial indicators that are used in the credit rating process of businesses
- To interpret financial statements appropriately and identify their vulnerability
- To understand cash flow dynamics and the effects of loan provision (positive/negative)
- To determine the key structural risks during loan provision to a group of companies
5. Credit Risk Analytics, Modelling & Scorecards
Description
The aim of the seminar is to analyze the development methodology of credit models, identify and address problems in their performance, and interpret the results of adequacy controls
Target Audience
- Financial Management and Credit Control Executives
- Credit Rating Analysts
- Sales and Marketing Executives
- Supply Chain Executives
- Business loan managers
- Investment Bankers
- Economic Analysts
- Risk Officers of Banking and Credit Institutions
- Banking Finance Analysts, Lecturers, etc.
Subject Areas
- Credit Risk Analytics, Modeling & Scorecards
- PD, LGD, EL modeling methodologies
- Application, Behaviour, Collections scoring/development and monitoring
- Scorecards in the Credit & Collection process
- Account centric vs. Customer centric models
- Individuals, Small Businesses, Corporates: credit methods and approaches
- The macroeconomic factor in credit risk modeling
- Scores and Ratings/Qualitative factors
- Models implementation/Tools & Systems
- Data, Big Data and alternative data sources
- Addressing the problem of insufficient historical data
- Modeling for IFRS9 requirements
What you will learn
- You will learn the development methodology of credit models and you will be able to identify strengths and weaknesses
- You will become familiar with the development methodology of models according to the IFRS9 standard
- You will be able to identify problems in the performance of models, and interpret the results of adequacy controls
- You will become familiar with credit risk evaluation methodologies for businesses
- You will learn more about the methodology of data management and problem solving
- You will be able to recommend action and make credit policy decisions based on the results of the models
6. Credit Insurance
Description
The aim of the seminar is to present a working model of the credit insurance cycle and the evaluation criteria for selecting it to secure doubtful loans
Target Audience
- Entrepreneurs
- Financial Management and Credit Control Executives
- Debt Collection Managers
- Business Management Executives
- Supply Chain Executives
- Trade Credit Insurance intermediaries and professionals who advise customers
Subject Areas
- Benefits of credit insurance:
- Secure turnover growth
- Preventing/avoiding doubtful loans
- Objective Credit Management
- Liquidity in case of a doubtful loan/compensation
- Easier and cheaper financing/working capital
- What are the Credit Insurance mechanisms
- Why is Credit Insurance necessary today
- Geopolitical risks, which affect the sustainability of businesses
- Credit Insurance before and after the crisis
- Fraud cases
- Case studies
- Best Practices
What you will learn
- You will be able to assess the risk from a default receivable and the effects on the company and its shareholders
- You will understand the structure of business credit insurance and its key characteristics
- You will become familiar with the concept of cost of credit and its effect on the company's profitability
- You will learn about the compensation procedure
- You will practice on setting the credit limit of a customer according to their credit risk
- You will understand how credit risk assessment is performed by the Underwriting department of an insurance company
7. Credit Legal Framework
Description
The aim of the seminar is to provide essential knowledge about the legal framework of credit, contribute to broadening the understanding of the participants of legal matters and their practical implications on credit provided to existing or new customers-companies, for easier and early risk diagnosis and management by taking the most recommended action, in each case, in order to secure credit transactions.
Target Audience
- Entrepreneurs
- Chief Financial Officers
- Business Management and Marketing Executives
Subject Areas
Means of payment & Underlying Relationship
- Business Current Account
- Cheque
- Bill of exchange
- Letters of Guarantee
- Stock
- Credit Insurance through insurance companies
Β. Assignment of Receivables
- Types of Assigned Receivables
- Types of Assignment
- Type of Assignment
1 Receivables from Private Individuals
3.2 Receivables from the Government - Assignment results
- Assumption of debt
- Setting off debt
- Writing off debt
D. Securing credit
- Consensus
1.1 Prenotation - Mortgage
1.2 Security collateral (stocks-shares-movable assets)
1.3 Registered Pledge - By Litigation - Interim Measures
2.1 Provisional Order
2.2 Prenotation
2.3 Precautionary Seizure
2.4 Judicial Sequestration
Ε. Collection of receivables
- Order to Pay
- Mediation
- Arbitration
- Lawsuit
- Provisionally Enforceable
- Write-off
- Defrauding Creditors
1.1 Civil Law Section
1.2 Criminal Law Section - Transfer of Group of Assets
- Seizure of movable & immovable assets
- Third party seizure
2.1 Private individuals
2.2 Government - Auctioning
- Classification & Privileges of Creditors
What you will learn
- You will become familiar with legal concepts about credit
- You will better understand the current legal framework of credit
- You will get a deeper understanding of risks associated with credit
- You will analyze the requirements and needs, main characteristics, and risks of counterparties in transactions
- You will improve the ability to forecast and evaluate transactions with your counterparties
- You will be updated on current trends in jurisprudence about critical market issues regarding credit
- You will broaden your knowledge of current issues that refer to business practices in the market
- You will learn ways to secure and collect receivables based on current trends in relevant fields in the credit market
- You will be able to provide added value to your enterprise or the organization that employs you
8. Data Protection for Credit
Description
The purpose of the seminar is to present the key concepts and goals of credit risk assessment, and the New Regulatory Framework for data protection, as well as how this new law affects businesses and rating agencies, and the market overall. It sets the framework for the key principles and legal bases for data processing, and determines the methods and tools used by businesses to lawfully implement the requirements of the New General Data Protection Regulation - GDPR.
Target Audience
- Entrepreneurs
- Financial Management and Credit Control Executives
- Data Protection Officers
- Chief Compliance Officers
Subject Areas
-
Introduction to the New General Data Protection Regulation (GDPR)
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Reference to Credit Risk: concept-goals-results
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Credit Rating Risk vs. GDPR: rules of the "game" / key" players" / obligations & rights
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The Effects of the GDPR on Credit Risk: obstacles to its implementation, regulatory obligations, misinterpretations
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Best Practices for Implementing a Framework of Compliance with the requirements of the GDPR for Credit Risk
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Profile Preparation & Automated Decision-Making (explanation of the New General Data Protection Regulation / article 22)
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Legal bases for Data processing in Credit Risk operations
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The concept of the legal basis of Legitimate Interest & its Application to Credit Risk
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Approach within the context of the New General Data Protection Regulation / GDPR: Credit Rate Agencies
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Approach within the context of the New General Data Protection Regulation / GDPR: Companies, customers, suppliers, partners
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Practices, Examples, Reports
Recapitulation: tools for proper application of the New General Data Protection Regulation / GDPR within the context of Credit Risk operations
What you will learn
- Key concepts and framework of the New General Data Protection Regulation - GDPR:
- How credit risk assessment processes are affected by the application of the GDPR to the market
- Best practices and tools for proper application of the Regulation within the context of credit risk assessment processes
9. Liquidity & Cash Flow Forecast
Description
In recent years, financial forecasting models have served as the predominant method for industry professionals, through which, the latter can apply their financial knowledge. After the recent economic crisis, there has been a constantly increasing need for experienced professionals in building forecasting models, since enterprises are required to predict different scenarios about the future, so that they can better adapt to an unstable and uncertain environment. This practical seminar guides the participants through building their own models, by using various forecasting techniques, in order to monitor specific Key Performance Indicators (KPIs). Nowadays, perhaps the most important performance indicator for enterprises is future cash flows, and strong emphasis is placed on forecasting them, and more specifically, their duration, size, and increase, as well as the uncertainty that characterizes them.
Target Audience
The seminar has been designed for Chief Financial Officers, Credit Rating Managers, accountants, financial advisors, financial analysts, and entrepreneurs with moderate experience in the preparation of financial models, who wish to improve their skills in financial decision making.
The participants should have access to Excel and be familiar with its basic functions.
Subject Areas
GENERATING & Building FINANCIAL MODELS
Introduction
Key principles
- The 4 steps of developing a financial model,
- Structural characteristics of a good model
- Forecast generating mechanism
- Forecasting variables
Preparing a financial model
- Defining the Model
- Configuration of key model parameters & hypotheses
- Balancing the Balance Sheet: The Debt or Cash Plug
- Calculating interest by using Circular References of Excel
Forecasting the key figures of the Profit and Loss Account and the Balance Sheet
- Forecasting techniques (linear regression, non-linear methods).
- Revenues, expenditure, investments, depreciation and amortization, borrowings.
- Indirectly building the Cash Flow Statement
Testing the model
- Sources of errors
CASE STUDY
- Developing a financial model to forecast cash flows
- UNCERTAINTY ANALYSIS METHODS
Finding out the most critical parameters of a model by using Tornado Charts
- Using aids off-the-shelf or/and building Tornado Charts
Sensitivity analysis
- Using one-dimensional and two-dimensional tables
Scenario Analysis (by using Excel Scenario Manager)
- Developing at least three scenarios
Monte Carlo simulation - (Required, in order to answer questions such as: "What is the probability of the company's borrowing exceeding €15m by the end of this year?")
- Probability Distributions of the most critical variables
- Building bar charts (Frequency distribution charts)
CASE STUDY
- Building sensitivity tables and Scenarios in the model of the Case Study of the first section
- Evaluation Methods
Discounted Cash Flow (DCF) method
- Fundamental Principles
- Explicit forecast period
- Discounting Future Cash Flows
- Discount Rate
- Weighted Average Capital Cost (WACC)
- Cost of Equity - CAPM method
- The concept of the marginal investor
- Beta (b) coefficient
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Terminal Value
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Perpetuity/Gordon Growth Model
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Exit multiple
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What you will learn
- You will become familiar with building the three financial statements (Profit and Loss Account, Statement of Financial Position, and Cash Flow Statement) and interlinking them.
- You will understand the evaluation method of companies and learn the relevant multipliers and (evaluation) models.
- You will become familiar with uncertainty management methods by building various scenarios about the future.
- You will improve the ability to make financial decisions
- You will learn how to evaluate the parameters that are more important for specific financial key performance indicators (KPIs) and make remedial decisions to improve them.
10. General Risk Management Issues
Description
The environment in which enterprises and investors have operated over the last years is characterized by increased and intense volatility in the prices of financial products. Factors that have contributed to this are the globalization of markets, an unprecedented free investment and speculative capital movement worldwide, and investors' growing demand for higher returns. In this new status quo, both business executives and prospective investors are asked to address a series of risks that affect various fields of financial activity.
The objective of this seminar is to provide an in-depth and practical presentation of the various types of financial risk that are faced by today's business executives within the context of their key functions, either in a company or as external investors, as well as the methods that are available to them to address those risks. In the context of this module, it is analyzed how various financial risks affect the evaluation of capital investments and total business value.
Target Audience
- Entrepreneurs
- Chief Financial Officers
- Business Management and Marketing Executives
- Supply Chain Executives
- Project Management Professionals
- Internal Auditors
- Executives other than Financial Managers who should be aware of the financial risks that are faced by their company.
- Human Resources Management Professionals
- Legal Professionals
- Financial analysts, portfolio managers, venture capital business executives who are involved in the investment arena and wish to expand and deepen their knowledge and tools that they can use in their job.
Subject Areas
- Defining and Identifying:
- Market Risk
- Default Risk
- Foreign Exchange Risk
- Interest Rate Risk
- Liquidity Risk
- Systematic v. Firm Specific Risk
- Risk Measurement
- Variance/Standard Deviation
- Levered & Unlevered Betas
- Value at Risk
- Risk Premium
- Fixed Investment Evaluation at Risk
- Decision Trees
- Scenario Analysis
- Sensitivity Analysis
- Simulation
- Business Value & Financial Risk
- Dividend Discount Models
- Free Cash Flow Models
- Relative Valuation Models
What you will learn
- You will acquire knowledge on the financial risks that are faced by an enterprise
- You will understand how you can quantify financial risk
- You will become aware of how business executives can evaluate investments in capital equipment by taking into account the risk undertaken.
- You will understand how financial risk affects business value
- You will be able to connect the concepts of investment risk, performance, and value better and on the right basis.
Course Start Date
2nd of October 2020
Cost of Attendance
€2.950
- 190 Hours
- Synchronous e-Learning
- Certificate of Further Training
- ECVET Units
- Subsidized by LAEK
