文档介绍：该【德勤信用风险管理 】是由【hezhihe】上传分享，文档一共【35】页，该文档可以免费在线阅读，需要了解更多关于【德勤信用风险管理 】的内容，可以使用淘豆网的站内搜索功能，选择自己适合的文档，以下文字是截取该文章内的部分文字，如需要获得完整电子版，请下载此文档到您的设备，方便您编辑和打印。Credit Risk Management Enhancing Your Bottom Line
Ebrahim Shabudin
Managing Director
Deloitte & Touche LLP
The AFP 23rd Annual Conference
New Orleans
November 3-6, 2002
Credit Background
Thorough identification and accurate measurement of credit risk, supported by strong risk management can help improve the bottom line
…..An uncertain and volatile economic environment significantly impacts this ability
…..The desire to grow and turn in outstanding results has a tendency to put pressure on the checks and balances within businesses
Value Proposition
Credit plays a critical role in “selling” products and services
Expands revenue opportunities with creditworthy, incremental customers
Utilizes innovative structures to support business relationships
Effective credit risk management limits credit losses and provides stable cash flows and earnings
Marketplace rewards companies exhibiting earnings and cash flow stability with higher P/E multiples
Marketplace penalizes credit induced volatility and “surprises”
Raises questions about quality of management
Corporate Credit Risk
Companies are exposed to significant levels of credit risk emanating from different sources
Accounts Receivables
Other Notes Receivables
Buyer and Franchise Financing
With Recourse Financing
Project Finance
Structured Transactions
Leases with Recourse
Derivatives Exposures
FX, Interest Rate Risk, Commodities etc.
Collateral Risk
Parent or Third Party Guarantees
Commercial and Standby Letters of Credit
Note also that Critical Suppliers to the company may pose specific credit risk
DSO Impact … an example
Actual
Company A
Peer Average
Q3 A/R
$295,396,000
Q3 Sales
$261,201,000
\ DSOs =
124*
Hypothetical
D Cash
DSOs
Q3 Sales
$261,201,000
\ Q3 A/R =
$122,002,230
+$173,393,770
* Equals x 90(or number of days in sales period)
Credit as a Facilitator
Credit risk management is important
Credit is a facilitator of business growth and performance
High business margins tend to attract lower quality clients and therefore higher risk profile to manage
Clients (buyers) may be concentrated in selected industries and provide limited portfolio diversification opportunity
Poor credit risk management resulting in negative impact to bottom-line is heavily penalized by markets
Credit Strategy & Risk Tolerance
Specific Quantifiable Objectives
Management Review Methodology
Credit Strategy Statement and Risk Tolerance
Coordination with Business Plan
The business strategies and objectives drive the establishment of credit
policies 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 Consider
Credit Policy
Credit Approval Authority
Limit Setting
Pricing Terms and Conditions
Documentation: Contracts and Covenants
Collateral and Security
Collections, Delinquencies and Workouts
Exposure Management
Aggregation
Control
Periodic Account Reviews
Payments/Aging
Credit Condition
Compliance with Covenants, Terms
Technology/Reports
Transactions/ Bookings
Risk-adjusted Return
Sales Channels
Risk Strategy
Underwriting Standards
Credit Application
Analysis
Business/ Industry
Financial
Credit
Credit Scoring and Ratings
Origination/
Assessment
Administration
Monitoring/
Control
Risk
Management
Portfolio Management
Concentration
Diversification
Allowance for Bad Debts
Risk Mitigation
Objectives
Type of Exposure
Instruments or Methods
Value Creation
Business Performance Measures
Organizations need a rigorous set of measures to support continuous improvement
Performance-based management utilizes metrics that measure actual
performance against predetermined thresholds. The thresholds are
established taking into account the organization’s strategy, operating
environment and process controls.
The measures drive value creation and should support problem identification and correction.
Business Strategy
Systems
Operations
Finance
Performance Management
Sales channels
Contracts & Documentation
Credit analysis
Credit limit
Pricing & terms
Credit Analysis
Credit Decisions
Collections
CREDIT POLICY
Collateral acceptance
Portfolio management
Financial analysis
Disposal / Risk mitigation
Collateral management
Customer management
Exposure measurement
Management reporting
Exposure aggregation
Recoveries
Credit scoring
Risk rating
RISK MANAGEMENT
Credit Risk Management’s Inter-related Activities
Compliance
Origination
Reporting
Transactions