The Fundamentals of Credit Risk for the Private Banker

Length: 2.5 Days

This session provides an introduction to credit risk management for the private banker. Participants are provided with a basic grasp of the risks in involved in lending to individuals and focuses on individuals whose wealth is derived from ownership in a small or medium sized business enterprise.

The seminar is divided into the following five sections:

Module I – Introduction to Credit Risk

Includes the Five C’s of Credit Analysis, Sources of Wealth/Wealth Life Cycle, Risks of Lending to Wealthy Individuals, Overview of Personal Financial Statements

Module II – Fundamental Credit Analysis

Includes Individual Income/Cash Flow Analysis, Adjusted Net Worth/Contingent Liabilities, Leverage/Liquidity/Financial Ratios

Module III – Critical Credit Knowledge

Includes Forms of Business Organization, Lending to Business Owners, Lending to Professionals (Physicians and Attorneys), Loan Documentation Basics

Module IV – Loan Structure

Includes Typical Borrowing Needs/Requests of Wealthy Individuals, Loan Structure Fundamentals, Collateral/Guarantees/Covenants, Loan Compliance/Monitoring

Module V – Making the Client Call

Includes Call Preparation and Exploring Additional Banking Opportunities for Existing and Prospective Clients, and Understanding the Perspective of the Underwriter at the Bank in Making Credit Risk Management Decisions.