B2B Portfolio Risk Analysis during a Recession

Lessons

1. The ABCs of Portfolio Risk Management

2. Assessing Trade Credit Risk Through Portfolio Segmentation

3. Risk Assessment and Credit Checks For High Volume Customers

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Duration 90 Min
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Lessons 3 Lessons
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Language English
  • About
  • Course Content
  • Resources
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Course Overview

Experts say that risk management is as essential to portfolio risk analysis as a processor is to a computer. Without it, portfolio management is simply a way to organize the view of projects that will almost certainly fail. Credit managers who are serious about their portfolio need to be serious about portfolio diversification and financial risk management to avoid putting credit at risk. Predicting portfolio risk in the middle of a global pandemic is like trying to explain to your child how big the universe is. We can use common sense and science, but in the end, it is only an educated guess. · The US Bureau of Labor Statistics true unemployment rate is close to 20 percent rather than 15, worse than most of the Great Depression. · Due to the comprehensive lockdown, indicators suggest the economy more or less stabilized around the middle of April 2020. · A fast recovery can only happen once the virus threat diminishes. When that will be, and how fast business will recover is uncertain. This course is centered around 1. Understanding The Value of Building a Portfolio Risk Analysis a Assessing Specific Customer Risk b Segmenting the Portfolio by Risk Categories 2. Understanding The Portfolio Analysis Cycle 3 Creating Balance Between Risk and Collections 4 Calculating Exposure and Probability of Default 5 Understanding The Misalignment of Objectives Between Shareholders and Creditors 6 How Questions About EBITA Will Remain Through Q1 2021 7 Calculating Loss Reserves using CECL The economic downturn has shaped a new normal in business. As a manager, changing with the times is a must. Otherwise, you could be putting your credit at risk. Check out this free course to learn how to adapt your customer portfolio.

What you will learn

  • The Value of Building a Portfolio Risk Analysis
  • Assess specific customer risk
  • Segmenting the Portfolio by Risk Categories
  • The Portfolio Analysis Cycle
  • Creating Balance Between Risk and Collections
  • Customer Risks to Be Aware of
  • Calculating Loss Reserves

Skills you will gain

Portfolio Analysis
Credit Policy
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Role: Credit Managers
Designed for Business Credit Managers
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Level : Advanced Course
Designed to educate experienced professionals
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Topic: O2C Essentials
O2C domain-specific training course
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Type: Theory Course
Theory lectures by Credit Practitioners
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Completion Time: 1 Week
Suggested reading for 2-3 hours/week

1. The ABCs of Portfolio Risk Management

What is portfolio analysis? How can you leverage it for risk management. This module helps you understand portfolio risk assessment strategies and some defensive actions that you could take.

2. Assessing Trade Credit Risk Through Portfolio Segmentation

Incorrect portfolio segmentation could be putting your credit at risk. Deep dive into this introductory course to understand how to improve your portfolio risk management.

3. Risk Assessment and Credit Checks For High Volume Customers

You could be putting your credit at risk by ignoring the top 10% of your customers by volume. This module explains key measures to check CECL and loss reserves for these customers.

Lesson Resources

Robert S. Shultz

Robert S. Shultz

Board of Directors Member, CMA
Robert Shultz has had a thirty- year career as a global credit and financial executive for large multi-national companies. As a Founding Partner of Quote to Cash Solutions (Q2C) LLC, he provides consulting services in all aspects of the credit and collections process for companies of all sizes in a variety of industries. He is currently on several Advisory boards including as a Special Advisor to the Credit Management Association Board of Directors and he is the Chairman of the Financial Executive Networking Group’s (FENG) Credit and Working Capital Management professional group.

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