COURSE OVERVIEW

Analysis of the financial cash flow and future financial impact of such decisions should be effectively carried with established methods and tools. The workshop will cover both quantitative and qualitative evaluation methods, techniques and tools. In this 2 – Day Workshop, loan, investment and project appraisal methodologies, techniques and tools will be introduced to participants who would be able to apply them in their job immediately after the workshop.

 

HOW WILL YOU BENEFIT:

  • At the end of this course, participants should be able to:
  • Apply a structured approach to corporate credit assessment
  • Calculate and interpret key financial ratios used in the credit rating process
  • Interpret financial statements for their effectiveness, relevance and vulnerability
  • Determine cash movement dynamics and ascertain their importance in the analysis process
  • Identify the major structure risks when lending into a group of companies

 

KEY CONTENTS:

Module 1 – Introduction to Business Finance, Financial Management and Project Finance

  • What is business finance?
  • What is financial management?
  • Overview of Cost Management
  • Types of Costs
  • Difference between accounting and finance
  • Why finances matter?
  • (Module Activity)

Module 2 – Financial Statement Basics

  • Overview of Published Financial Statements
  • The Income Statement – Components and Key Figures to watch!
  • The Statement of Financial Position – Components and Key Figures to watch!
  • The Cash Flow Statement – Components and Key Figures to Watch!
  • Functions of Financial Statements
  • Financial Statement from a Stakeholder Perspective
  • (Module Activity)

Module 3 – Analysis of Financial Statement

  • The Ratio Approach
  • Vertical Analysis
  • Horizontal Analysis
  • Common Size Analysis
  • DuPont Analysis
  • (Module Activity)

Module 4 – Assessing and Measuring Credit Risk

  • Components of credit risk and credit risk drivers
  • Approaches to assessing credit risk for single obligor credit risk
  • Role of Rating Agencies, ratings and how they work
  • Comprehensive risk analysis framework
  • (Module Activity)

Module 5 – Business Risk Assessment

  • Defining the client and credit base
  • Business Risk Factors and Drivers
  • Structured approach to industry risk assessment
  • Assessing management risk profile and risk tolerance
  • (Module Activity)

Module 6 – Group Structure Risk

  • Definition and exercises on structural subordination, dilution and holding company risk
  • Introduction to mitigating group structure risks
  • (Module Activity)

Module 7 – Cash Flow Analysis

  • Cash drivers: the PACED framework
  • Asset conversion cycle
  • Why EBITDA is not cash flow
  • Linking cash flow and business risks
  • (Module Activity)

 Module 8 – Debt Capacity and Debt Service Analysis

  • Why companies need external funding
  • Capital structure, sources of debt, and repayment sources
  • Debt capacity and debt service
  • Assessing stability and sustainability of cash flow
  • (Module Activity)

Module 9 – Cash Flow Forecasting and Sensitivity Analysis

  • Structured approach to forecasting
  • Linking business risk drivers to projections
  • Assessing sensitivities and scenarios
  • Monitor when a client’s risk profile deteriorates
  • (Module Activity)

Module 8 – Course Wrap Up and putting it all together

  • Business Case Studies
  • Review of the Modules
  • Case study: Using the published data of a major company, delegates prepare and present a loan proposal to a credit committee

 

METHODOLOGY

This program will be delivered via interactive presentation, practical hands-on activities, role-play and group & individual presentation.

 

ENROLLMENT & ENQUIRY
  • For Enrollment, kindly state the Course Title and  Number of Attendees, sent it to info@forster.com.my or via our Contact FormHere. We will customise a favorable quotation that suitable for your training objectives.
  • For Enquiry, kindly contact us at +603-8600 5993 for further information. Alternatively, you can email us at: info@forster.com.my, OR, sent your request via our Contact FormHere