信用风险管理培训讲义.ppt

Credit Risk ManagementEnhancing Your Bottom LineEbrahim Shabudin Ebrahim ShabudinManaging Director Managing Director Deloitte&Touche LLP Deloitte&Touche LLPThe AFP 23rd Annual Conference New OrleansNovember 3-6,2002Credit BackgroundllThorough identification and accurate Thorough identification and accurate measurement of credit risk,supported by strong measurement of credit risk,supported by strong risk management can help improve the bottom risk management can help improve the bottom linelinell.An uncertain and volatile economic.An uncertain and volatile economic environment significantly impacts this abilityenvironment significantly impacts this abilityll.The desire to grow and turn in outstanding.The desire to grow and turn in outstanding results has a tendency to put pressure on the results has a tendency to put pressure on the checks and balances within businesseschecks and balances within businessesValue PropositionCredit plays a critical role in“selling”products and services Credit plays a critical role in“selling”products and services Expands revenue opportunities with creditworthy,incremental Expands revenue opportunities with creditworthy,incremental customers customers Utilizes innovative structures to support business relationships Utilizes innovative structures to support business relationshipsEffective credit risk management limits credit losses and provides Effective credit risk management limits credit losses and provides stable cash flows and earnings stable cash flows and earnings Marketplace rewards companies exhibiting earnings and cash flow Marketplace rewards companies exhibiting earnings and cash flow stability with higher P/E multiples stability with higher P/E multiples Marketplace penalizes credit induced volatility and“surprises”Marketplace penalizes credit induced volatility and“surprises”Raises questions about quality of management Raises questions about quality of managementCorporate Credit RiskCompanies are exposed to significant levels Companies are exposed to significant levels of credit risk emanating from different sourcesof credit risk emanating from different sourcesAccounts Receivables Accounts Receivables Other Notes Receivables Other Notes ReceivablesBuyer and Franchise Financing Buyer and Franchise FinancingWith Recourse Financing With Recourse Financing Project Finance Project Finance Structured Transactions Structured Transactions Leases with Recourse Leases with RecourseDerivatives Exposures Derivatives Exposures FX,Interest Rate Risk,Commodities etc.FX,Interest Rate Risk,Commodities etc.Collateral Risk Collateral Risk Parent or Third Party Guarantees Parent or Third Party Guarantees Commercial and Standby Letters of Credit Commercial and Standby Letters of Credit Note also that Critical Suppliers to the company Note also that Critical Suppliers to the company may pose specific credit risk may pose specific credit riskDSO Impact an exampleActualActualCompany ACompany APeer AveragePeer AverageQ3 A/RQ3 A/R$295,396,000$295,396,000Q3 SalesQ3 Sales$261,201,000$261,201,000 DSOs=DSOs=124*124*51.351.3HypotheticalHypotheticalD D CashCashDSOsDSOs51.351.3Q3 SalesQ3 Sales$261,201,000$261,201,000 Q3 A/R=Q3 A/R=$122,002,230$122,002,230+$173,393,770+$173,393,770*Equals 295.4M/261.2M x 90(or number of days in sales period)Equals 295.4M/261.2M x 90(or number of days in sales period)Credit as a FacilitatorCredit risk management is important Credit is a facilitator of business growth and Credit is a facilitator of business growth and performance performance High business margins tend to attract lower quality High business margins tend to attract lower quality clients and therefore higher risk profile to manage clients and therefore higher risk profile to manage Clients(buyers)may be concentrated in selected Clients(buyers)may be concentrated in selected industries and provide limited portfolio diversification industries and provide limited portfolio diversification opportunity opportunity Poor credit risk management resulting in negative Poor credit risk management resulting in negative impact to bottom-line is heavily penalized by markets impact to bottom-line is heavily penalized by marketsCredit Strategy&Risk Toleranceu Specific Quantifiable Objectivesu Management Review Methodologyu Credit Strategy Statement and Risk Toleranceu Coordination with Business PlanThe business strategies and objectives drive the establishment of creditpolicies and procedures.Measurement and reporting as well as the use of current technologies enhance credit decision-making and improve risk management.The entire process is continually re-evaluated and improved.Credit Risk Areas to Considerl l Credit Policy Credit Policyl l Credit Approval Credit Approval Authority Authorityl l Limit Setting Limit Settingl l Pricing Terms Pricing Terms and Conditions and Conditionsl l Documentation:Documentation:Contracts and Contracts and Covenants Covenantsl l Collateral and Collateral and Security Securityl l Collections,Collections,Delinquencies Delinquencies and Workouts and Workoutsl l Exposure Exposure Management Management Aggregation Aggregation Control Controll l Periodic Account Periodic Account Reviews Reviews Payments/Aging Payments/Aging Credit Condition Credit Conditionl l Compliance with Compliance with Covenants,Terms Covenants,Termsl l Technology/Reports Technology/Reports Transactions/Transactions/Bookings Bookings Risk-adjusted Risk-adjusted Return Returnn n Sales Sales Channels Channelsn n Risk Strategy Risk Strategyn n Underwriting Underwriting Standards Standardsn n Credit Credit Application Applicationn n Analysis Analysisu u Business/Business/Industry Industryu u Financial Financialu u Credit Creditn n Credit Scoring Credit Scoring and Ratings and RatingsOrigination/AssessmentAdministrationMonitoring/ControlRiskManagementn n Portfolio Portfolio Management Managementn n Concentration Concentrationn n Diversification Diversificationn n Allowance for Allowance for Bad Debts Bad Debtsn n Risk Risk Mitigation Mitigationn n Objectives Objectivesn n Type of Type of Exposure Exposuren n Instruments or Instruments or Methods MethodsValue CreationBusiness Performance MeasuresPerformance-based management utilizes metrics that measure actual performance against predetermined thresholds.The thresholds are established taking into account the organizations strategy,operatingenvironment and process controls.The measures drive value creation and should support problem identification and correction.nBusiness StrategySystemsOperationsFinancePerformance ManagementCredit AnalysisCredit DecisionsCollectionsCREDIT POLICYRISK MANAGEMENTCredit Risk Managements Inter-related ActivitiesComplianceOriginationReporting