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Certified Credit Management (CCM) 2017)
Module 1 – Presentation Skills
Module 2 - Financial Accounting
Module 3 - Financial Analysis
Module 4 – Cash Flow Analysis
Module 5 - Non Financial Analysis in Credit Risk Management
Module 6 – The Practicalities of Credit Analysis
Module 7 – Islamic Banking Services
Module 8 – Problem Loans
Module 9 – Credit Aspects of International Trade Finance
Module 10 – Legal Aspects of Lending
Module 11 – Credit Aspects in the Treasury Functions
Module 12 – Working with Customers
Credit Committee Presentation
Certified Credit Management 2017
1
CCM 2017 - MODULE 1 - PRESENTATION SKILLS
OBJECTIVE:
To prepare participants for presenting Credit Appraisals in a Credit Committee
environment
CONTENTS:
Presentational communication concepts
Effective communication
Organizing a presentation
Use of presentation aids
Delivering the presentation
Matching the presentation to the Credit Appraisal
Handling questions
Obtaining a decision
Writing Credit Proposal
Writing Call Reports
Managing a meeting with a prospective clients
DURATION:
12 training hours
SPEAKER
Mr. Mansour Abu Helal
2
CCM 2017 - MODULE 2 - FINANCIAL ACCOUNTING
OBJECTIVE:
To familiarize the participants with the fundamental concepts of accounting, the recording
of financial information, preparation of trial balance and final accounts, and the effects of
accounting policies and methods of financial information provided
CONTENTS:
An introduction to financial statements
The accounting equation
The income statement
The ledger account
The rules of debit and credit
The general ledger
The journal and journal entries
Measuring net income
Revenue and expense items
The accounting cycle
Analysis and recording of transactions
Posting to general ledger
Trial balance
Adjusting entries
Work sheets
Recording of adjusting journal entries
Gross profit
Accounting for sales
Accounting for purchases
Classified financial statements
Internal control
Accounting for cash
Bank reconciliation
Accounting for fixed assets
Depreciation accounting
Inventory valuation methods
Accounting for receivables
Accounting for Long-term borrowings
Accounting for owner’s equity
Accounting for investments
DURATION:
60 training hours
SPEAKER
Mr. Desmond Nelson
3
CCM 2017 - MODULE 3 - FINANCIAL ANALYSIS
OBJECTIVE:
To understand the structure of financial statements, the concepts, tools and techniques of
financial analysis of business firms
CONTENTS:
Structure of financial statements
Income statement, balance sheet, and funds flow statement
Tools and techniques of financial analysis
Ratio analysis, ROI framework, funds flow concept, break even concept, trend
analysis, comparative analysis, sensitivity analysis, operating cycle and working
capital analysis, time value of money, and capital budgeting techniques
Financial analysis using case studies
Presenting the results – Reports and Presentations
Practical applications of financial analysis and ratios
Spread sheet - MS Excel workshop
Introduction to modeling
Business and Financial Risk in various business sectors, e.g.
Investment
Real Estate
Retail
Manufacturing
Business and Financial Risk in various categories of business, e.g.
SME
Mid Cap
Corporates
Geographical – International business
DURATION
60 training hours
SPEAKER
Ms. Suha Al-Awadhi
4
CCM 2017 - MODULE 4 - CASH FLOW ANALYSIS
OBJECTIVES:
To develop a thorough understanding of cash flows, funds flow and proforma statements
used in business
To enhance the ability of the participant to assess the validity of cash flow projections
and proforma statements often submitted by clients
CONTENTS:
Review of the concepts of cash and accrual accounting
Review the essential cost concepts to understand cash flow and operating budgets
Review of the basic concepts of cash flow, funds flow and working capital
Cash cycle for trading
Cash cycle for manufacturing
Cash cycle for new projects
Concept and uses of profit-cost volume analysis
Forecasting methods of sales and expenses
Preparation of cash budgets
Net Present Values
Discounted Cash Flow
Proforma financial statements:
Income and expense statement
Balance sheet
Funds flow statement
Evaluation of proforma statements from the lender’s point of view
Validity of assumptions and use of sensitivity analysis on key variables
Assessment of the future earning power and the ability to service debt
Structuring the support - Cash and non- cash lines of finance
Presentation of Findings - Reports and Presentations
Practical Applications
DURATION:
48 training hours
SPEAKER
Mr. Kieran Delaney
5
CCM 2017- MODULE 5 - NON FINANCIAL ANALYSIS IN
CREDIT RISK ASSESSMENT
OBJECTIVES:
To develop the ability to use the concepts, models, tools and techniques of non-financial
aspects of credit analysis
To develop an understanding of the various types of bank credits and their
characteristics
To develop an ability of using the concepts, tools and techniques of appraising and
monitoring credit proposals
CONTENTS:
Models used in Non-Financial Analysis:
General principles
CAMPARI
The C’s of credit
SWOT…etc.
Evaluation of the company’s management
Ansoff
Industry and competitive position analysis
Porter
Boston Consulting Group
Market Matrix…etc.
The Market place
PESTER…etc.
Canons of lending
Personal lending
Business lending
Legal consideration
Rights and obligations
Cash and Non – cash lines of finance
Practical considerations
Security for advances
Types
Protecting
Releasing
Marketing of Lending Products
DURATION
24 training hours
SPEAKER
Mr. Derek Lucas
6
CCM 2017 - MODULE 6 - THE PRACTICALITIES OF CREDIT
ANALYSIS
OBJECTIVES:
To assist participants to prepare accurate, informative, well-structured and concise reports
on all aspects of credit
To practice the ‘art’ of lending and making sound business decisions
To assist participants in the administration of their customer portfolio
CONTENTS:
Credit Analysis
Financial statements and ratio analysis - recap
Cash flow analysis and repayment ability – recap
Operating cycle and working capital financing
Non-Financial Analysis - recap
Loan risk analysis and loan classification
Loan pricing
Loan types and purpose - an overview
Loan structuring, covenants, documentation and legal aspects
Structuring of Facilities, cash and non- cash - recap
Security / Collaterals - recap
Legal considerations
Regulatory issues
Marketing of Credit Products
Presenting Reports – Written and Oral
Credit Reports
Characteristics of report writing
Structure of the report
Use of graphs, figures, charts, etc. within reports
Getting the message across
Persuasive conclusions
Presenting Reports to a Credit Committee
Credit Administration
Scheduling of interviews/meetings with customers
Maximizing potential for building relationships and sales through effective and efficient
management of the customer portfolio and prospective customer contact process
Legal considerations
Regulatory issues
Monitoring and the control of lending
Problem Loans
Early Warning Signs
Follow up
Money Laundering
How credit facilities may be used
How an assessment of lending risk complements an understanding of Banking Risk
Credit
Liquidity
Market and
Operation
Basel II and Basel III
7
Stress Testing
Alternative Sources of Finance
Capital markets
Crowd sourcing or crowd funding
DURATION
60 training hours
SPEAKER
Dr. John Hanson
8
CCM 2017 - MODULE 7 – ISLAMIC BANKING SERVICES
OBJECTIVE:
To assist participants understand the different tools applied by Islamic Banks to
finance corporate needs, and will be able to clearly differentiate between Islamic
products compared to conventional products.
CONTENTS:
Introduction to Islamic Banking
Why Islamic Banking?
Understanding of Share ’a rules of commercial law
Theory of contracts – Nominated contracts
Key differences to conventional finance
Introduction to Islamic Bank–Liability Structure
Key concepts of depositing.
Deposit and Savings accounts.
o Mudaraba Deposits
o Wakala Deposits
How are these instruments different from conventional deposits?
o Guarantee pre-determined return…
Islamic current accounts:
o Qard.
o Wadia
How are these instruments different from conventional deposits
Islamic Bank Asset Structures
Asset portfolio of Islamic banks:
o Financing products
o Investment Instruments
Managing the mismatching maturity gap between assets and liabilities in Islamic
Banks
Overview of Islamic Finance
Key concepts of Islamic Finance- Ethical approach, added value, balance etc.
Sale based modes of finance:
o Murabaha: goods, commodity
o Salam.
o Istisn’a.
Lease based modes of finance:
o Ijara: Operating lease.
o Ijara Muntahiya Bi Tamleek: Lease to own
o Ijara Mawsofa: Forward lease.
Equity based modes of finance:
o Mudaraba.
o Musharaka.
9
o Wakala.
How are these instruments different from conventional finance?
o Fixed or floating rate, Collateral, early settlement, late payment, Default and
Restructuring?
What are kind of risks associated with Islamic financial products?
Overview of Islamic Banking services:
Trade Finance - Contingent liabilities.
o Letter of Credit- LC Murabaha
o Letter of Guarantee –Shipping Guarantee
How are these instruments different from conventional finance?
How Islamic banks make profit?
DURATION:
18 training hours
SPEAKER
Dr. Ahmed Al-Otaibi
10
CCM 2017 - MODULE 8 – PROBLEM LOANS
OBJECTIVES:
Identify the early warning signals for Loans/credit facilities
Understand the different stages of loan workout processes
How to ensure the appropriate Risk-reward
CONTENTS:
Warning Signals
Orange flags
Red flags
Overview of loan workouts and restructuring
Lessons from experience
Introduction to the loan workout process
Initial analysis; use of liquidation models to assess each stakeholders’ economic
interest
Restructuring the balance sheet of a highly leveraged company
Companies in distress:
What were the early warning signals? How could the lender have acted upon these in
the absence of covenant breaches?
What were the causes of the problem? Are there any creative accounting issues?
How can the issues be addressed?
Who has the economic interest?
Should the lender give time? Take new collateral, adjust pricing terms etc...
Who are the other key stakeholders and what will be their negotiating position?
What liabilities crystallize on a gone concern basis?
Assessing viability
How to structure the pricing (including kickers) to ensure the right return?
The negotiating positions of stakeholders
Ensuring the appropriate risk-reward
Including the use of: – Increased interest rates
Part cash pay interest/ part PIK
Restructuring fees
Success fees and how to tie this to company’s ability to pay
Warrants
Convertible term loans
Debt-equity swaps
Basel II & Basel III considerations
IFRS 9 (IAS39)
Multi-creditor workouts
Valuing the distressed company’s assets
DURATION:
18 training hours
SPEAKER
Mr. Adrian Grant
11
CCM 2017 - MODULE 9 – CREDIT ASPECTS OF
INTERNATIONAL TRADE FINANCE
OBJECTIVES:
To appreciate the dynamic interplay of trading relationships, payments, financial methods
and terms of sale
To comprehend the techniques of covering the risks of foreign exchange exposure
To understand the importance of the documents that form the legal and commercial
foundation for international business
To analyze the mechanics of self-liquidating acceptance finance
CONTENTS:
Banks – their role in International Finance-Controls
Bank relationships – customer and bank credit risks
Foreign exchange – the markets and uses of foreign currencies in spot, forward and pure
currency areas of trading
Methods of settlement including SWIFT
NOSTRO/VOSTRO Accounts
Documents used in international trade-their use and purpose
Documentary collections – as a means of settlement or finance
Letters of Credit and guarantees in outline-export agencies
Sundry financing arrangement
Money Laundering and Fraud Risks
DURATION:
24 training hours
SPEAKER
Dr. Adnan Al-Shawaf
12
CCM 2017 - MODULE 10 - LEGAL ASPECTS OF LENDING
OBJECTIVE:
To appreciate those legal issues which will impact on day to day dealings with customers
CONTENTS:
Banker-customer relationship
Confidentiality
Credit collaterals
Letters of Guarantee
Commercial companies and Mutual Funds
Legal documentation required/used in the Credit Department
DURATION:
12 training hours, evening
SPEAKER
Mr. Ayman Al Khatib
NB: This Module will be presented in Arabic
13
CCM2017 - MODULE 11 – CREDIT ASPECTS IN TREASURY
FUNCTIONS
OBJECTIVE:
To appreciate the fundamental concepts of the Money Markets and related Treasury
Products
CONTENTS:
Macroeconomic overview
The Money Market
Wholesale
Retail
Participants
Treasury Operations
Interest Rates
Foreign Exchange
Stock Market
Derivatives
Forwards and Futures
Options
Swaps
Hedging
Leverage
Secondary Markets
Bourse Game/Simulation
DURATION:
24 training hours
SPEAKER
Mr. Naheel Lababidi
14
CCM 2017 - MODULE 12 – WORKING WITH CUSTOMERS
OBJECTIVE:
To provide an insight of best practices in selling bank services to existing and potential
customers
CONTENTS:
Relationship banking as a marketing strategy
Knowing your bank’s products and services
Prospecting-particularly credit products
Identifying the customer’s needs
Planning the sale
Building the relationship
Influencing the customer’s decision making
Dealing with customer queries
Handling objections
Negotiating
Making the sale
Follow up and success indicators
Cross selling techniques
Telephone selling skills
Prioritization
Customer service
Customer Relationship Building
DURATION:
24 training hours
SPEAKER
Mr. Dia El Turk
15
CCM-2017 - Certified Committee Presentation
At the end of the Certified Credit Management Program, in June, case studies based on
Kuwait Stock Exchange listed companies are required to be prepared.
A thorough Credit Analysis of the cases, based on the information made available
without reference to the business or information within their banks, is undertaken.
A ‘Credit Report’ is submitted to the IBS and is individually presented to a (mock up)
Credit Committee made up of the Banks’ Credit Administration and Management
Training Committee Members.
During the presentation the trainee is questioned as she/he would be in real life. The
Committee Members note their comments on each Report/Presentation.
NOTE: Credit Committee presentation will be graded and requires Pass
Mark 70%
16
CCM-2017 - E-learning Courses
The e-learning courses will be assigned during the Certification Program and should be
completed prior to the end of the Program
To Be Advised Later