珠宝行业信用风险管理（英文版）(powerpoint 35页).pptx

Credit Risk ManagementEnhancing Your Bottom LineEbrahim ShabudinEbrahim ShabudinManaging Director Managing Director Deloitte & Touche LLPDeloitte & Touche LLPThe AFP 23rd Annual Conference New OrleansNovember 3-6, 2002Credit BackgroundThorough identification and accurate Thorough identification and accurate measurement of credit risk, supported by strong measurement of credit risk, supported by strong risk management can help improve the bottom risk management can help improve the bottom lineline.An uncertain and volatile economic .An uncertain and volatile economic environment significantly impacts this abilityenvironment significantly impacts this ability.The desire to grow and turn in outstanding .The desire to grow and turn in outstanding results has a tendency to put pressure on the results has a tendency to put pressure on the checks and balances within businesseschecks and balances within businessesValue PropositionCredit plays a critical role in “selling” products and servicesCredit plays a critical role in “selling” products and services Expands revenue opportunities with creditworthy, incremental Expands revenue opportunities with creditworthy, incremental customerscustomers Utilizes innovative structures to support business relationshipsUtilizes innovative structures to support business relationshipsEffective credit risk management limits credit losses and provides Effective credit risk management limits credit losses and provides stable cash flows and earningsstable cash flows and earnings Marketplace rewards companies exhibiting earnings and cash flow Marketplace rewards companies exhibiting earnings and cash flow stability with higher P/E multiplesstability with higher P/E multiples Marketplace penalizes credit induced volatility and “surprises”Marketplace penalizes credit induced volatility and “surprises”Raises questions about quality of managementRaises questions about quality of managementCorporate Credit RiskCompanies are exposed to significant levels Companies are exposed to significant levels of credit risk emanating from different sourcesof credit risk emanating from different sourcesAccounts Receivables Accounts Receivables Other Notes ReceivablesOther Notes ReceivablesBuyer and Franchise FinancingBuyer and Franchise FinancingWith Recourse FinancingWith Recourse Financing Project FinanceProject Finance Structured TransactionsStructured Transactions Leases with RecourseLeases with RecourseDerivatives Exposures Derivatives Exposures FX, Interest Rate Risk, Commodities etc.FX, Interest Rate Risk, Commodities etc.Collateral RiskCollateral Risk Parent or Third Party Guarantees Parent or Third Party Guarantees Commercial and Standby Letters of CreditCommercial and Standby Letters of Credit Note also that Critical Suppliers to the company Note also that Critical Suppliers to the company may pose specific credit riskmay pose specific credit riskDSO Impact an exampleActualActualCompany ACompany APeer AveragePeer AverageQ3 A/RQ3 A/R$295,396,000$295,396,000Q3 SalesQ3 Sales$261,201,000$261,201,000 DSOs = DSOs =124*124*51.351.3HypotheticalHypotheticalD D CashCashDSOsDSOs51.351.3Q3 SalesQ3 Sales$261,201,000$261,201,000 Q3 A/R = Q3 A/R =$122,002,230$122,002,230+$173,393,770+$173,393,770 * * Equals 295.4M/261.2M x 90(or number of days in sales period)Equals 295.4M/261.2M x 90(or number of days in sales period)Credit as a FacilitatorCredit risk management is important Credit is a facilitator of business growth and Credit is a facilitator of business growth and performanceperformance High business margins tend to attract lower quality High business margins tend to attract lower quality clients and therefore higher risk pro manageclients and therefore higher risk pro manage Clients (buyers) may be concentrated in selected Clients (buyers) may be concentrated in selected industries and provide limited portfolio diversification industries and provide limited portfolio diversification opportunityopportunity Poor credit risk management resulting in negative Poor credit risk management resulting in negative impact to bottom-line is heavily penalized by marketsimpact to bottom-line is heavily penalized by marketsCredit Strategy & Risk ToleranceuSpecific Quantifiable ObjectivesuManagement Review MethodologyuCredit Strategy Statement and Risk ToleranceuCoordination with Business PlanThe business strategies and objectives drive the establishment of creditpolicies and procedures. Measurement and reporting as well as the use of current technologies enhance credit decision-making and improve risk management. The entire process is continually re-evaluated and improved.Credit Risk Areas to ConsiderCredit PolicyCredit PolicyCredit Approval Credit Approval AuthorityAuthorityLimit SettingLimit SettingPricing Terms Pricing Terms and Conditionsand ConditionsDocumentation: Documentation: Contracts and Contracts and CovenantsCovenantsCollateral and Collateral and SecuritySecurityCollections, Collections, Delinquencies Delin。