- Financial Statement Analysis
- Review Financial Statements: Analyze balance sheets, income statements, and cash flow statements to assess financial health, liquidity, profitability, and debt servicing ability.
- Ratio Analysis: Calculate and interpret financial ratios such as liquidity, profitability, and leverage ratios to evaluate credit risk and stability.
- Trend Analysis: Identify and analyze trends in financial performance and the impact of economic conditions.
- Credit Risk Assessment
- Credit Scoring: Utilize credit scoring models or rating systems to quantify creditworthiness based on financial data and credit history.
- Risk Evaluation: Assess repayment ability, collateral adequacy, industry risks, and macroeconomic factors.
- Risk Mitigation Strategies: Recommend measures like collateral requirements or loan structuring to manage and mitigate credit risk.
- Industry and Market Analysis
- Sector Analysis: Understand market dynamics, competitive landscape, regulatory environment, and economic trends affecting borrowers’ industries.
- Market Research: Stay updated on macroeconomic indicators and industry developments impacting creditworthiness and repayment capabilities.
- Due Diligence and Documentation
- Credit Investigations: Verify borrower information and validate financial data to ensure accuracy and integrity.
- Documentation Review: Ensure loan documentation and legal contracts comply with regulatory requirements and internal policies.
- Credit Decision Making
- Recommendations: Prepare detailed credit reports and present findings to senior management or credit committees for informed decisions.
- Risk Appetite Assessment: Determine appropriate credit limits, terms, and pricing based on the organization’s risk appetite and guidelines.
- Monitoring and Portfolio Management
- Portfolio Oversight: Monitor existing loans and credit facilities, conducting periodic reviews to assess creditworthiness and identify risks.
- Early Warning Signals: Detect early signs of credit deterioration or default risk and propose measures to mitigate losses or restructure loans.
- Communication and Relationship Management
- Client Interaction: Communicate credit decisions, terms, and conditions to clients, addressing inquiries and concerns.
- Collaboration: Work with relationship managers, legal advisors, and other stakeholders for comprehensive credit management.
- Regulatory Compliance
- Compliance Adherence: Ensure adherence to regulatory requirements, internal policies, and risk management frameworks.
- Risk Reporting: Prepare regulatory reports and compliance documentation as required by authorities and governance standards.
