The Lending Decision Process Series (RMA)
Course Number: ABA
Course Code: ABA
This six-part series will give a foundation in the following areas of study: business and industry risk analysis, management assessment, financial accounting, balance sheet and income statement analyses, ratio trend analysis, cash cycle seasonality analysis, borrowing causes and repayment source assessment, cash flow analysis and using financial projections.
Produced by the Risk Management Association
Series 1: Industry, Management, and Economic Influences
Series 2: Interpreting Quality of Financial Reports and Accounts
Series 3: Analyzing the Company’s Financial Performance and Condition
Series 4: The Cash Cycle, Seasonality and Discovering Borrowing Causes and Repayment Sources
Series 5: Analyzing Cash Flow Statements to Measure Long-Term Repayment Ability
Series 6: Using Financial Projections to Fine Tune the Credit Analysis
There are 17 courses included in the complete Lending Decision Process series.
Approximate time to complete all courses and modules in the curriculum is 44 hours.
What You’ll Learn
After completing this course, students will be able to:
- Interpret repayment risks related to industry, economic, market and management factors
- Interpret risks stemming from the quality of financial reports and underlying financial accounts.
- Interpret repayment risks suggested by the company’s historical financial performance and financial condition, applying balance sheet and income statement measures to analyze liquidity, leverage, profitability, financial productivity, and efficiency.
- Interpret repayment risks related to a company’s cash cycle and seasonal characteristics, interpreting both long- and short-term borrowing causes and related repayment sources.
- Analyze cash flow statements and traditional debt service coverage measures to interpret cash flow repayment risks.
- Interpret future ability to repay debt by constructing and analyzing financial projections, evaluating margins of protection in business, industry or management risks
Audience: Loan trainees, credit analysts, and anyone with commercial lending authority.