Credit risk assessment
Course description
Target group
Employees from Credit Solutions, Risk Management, Structured Reinsurance, Global and Large Risks, Finance and Asset Management as well as actuaries.
Training goals
By the end of the programme participants will be able to:
- Identify risk-underwriting opportunities consistent with Swiss Re's risk control values
- Link qualitative business conclusions to the quantitative financial analysis^
- Appreciate the importance of debt capacity and the different techniques for assessment thereof
- Adapt cash flow analysis techniques and apply them in the field of corporate valuation in general, and Discounted Cash Flow (DCF) valuation in particular
- Explore alternative methods of corporate valuation, (P/E multiples, market/book multiples, EBIT/EBITDA multiples), and how these support the DCF valuation approach
- Understand the techniques required for evaluating the credit and market risk implications of capital markets products in general, and derivatives products in particular
Content
Day 1: Corporate Financial Statement Analysis: analyses business risk, income statement, balance sheet, working capital, leverage and liquidity, liabilities and capital structure.
Day 2: Cash Flow and Debt Capacity Analysis: focuses on debt and transaction structuring and, in particular, how the cash flows of a firm can be channelled so as to ensure the best chance of repayment of Swiss Re's capital.
Day 3: Value Creation and Risk Analysis in Corporate Restructuring: provides a conversational, yet sufficiently detailed, understanding of the key principles which underlie corporate value creating strategies, particularly in the fields of change of ownership, mergers and acquisitions, sources of capital and capital structure. It reviews the risk analytical disciplines demanded of the credit officer in reviewing such deals. In addition, how these principles can be applied to individual Swiss Re clients will also be examined.
Special background requirements
Corporate finance and credit risk management knowledge.
