Credit Risk Analysis - A tryst with strategic prudence

Description

Half Title Title Page Copyright Dedication Preface Author’s Profile Contents PART 1 BASICS OF CREDIT RISK CHAPTER 1 INTRODUCTION TO CREDIT 1.1 Meaning of Credit 1.2 Credit Loss 1.3 Role Of Credit 1.4 Credit Market 1.5 Credit—Analogous to Fire 1.6 Suppliers of Credit CHAPTER 2 CREDIT RISK 2.1 Meaning of Credit Risk 2.2 Causes of Credit Risk 2.3 Credit Risk and Return 2.4 Credit Risk Analysis 2.5 Historical Progress of Credit Risk Analysis 2.6 Need for Credit Risk Analysis CHAPTER 3 MANAGING CREDIT RISK 3.1 Strategic Position Of Credit Risk Management 3.2 Credit Risk Management Context 3.3 Credit Risk Management Objectives 3.4 Credit Risk Management Structure 3.5 Credit Risk Culture 3.6 Credit Risk Management in Non-Financial Firms 3.7 Credit Risk Management in Financial Intermediaries PART 2 FIRM CREDIT RISK CHAPTER 4 FUNDAMENTAL FIRM-LEVEL RISKS 4.1 Firm Risk Classification 4.2 Risk Matrix 4.3 Different Risk Levels 4.4 Migration CHAPTER 5 EXTERNAL RISKS 5.1 Business Cycle 5.2 Economic Conditions 5.3 Inflation/Deflation 5.4 Balance of Payments & Exchange Rates 5.5 Political 5.6 Fiscal Policy 5.7 Monetary Policy 5.8 Demographic Factors 5.9 Regulatory Framework 5.10 Technology 5.11 Union Involvement 5.l2 International Developments CHAPTER 6 INDUSTRY RISKS 6.1 Types of Industry Risks 6.2 Defining an Industry 6.3 Industry Life Cycle 6.4 Permanence of Industry 6.5 Government Attitude & Industry 6.6 Factors of Production 6.7 Business Cycles 6.8 Industry Profitability 6.9 Competitor Analysis Illustration CHAPTER 7 INTERNAL RISKS 7.1 Understanding the Activity 7.2 Risk Context & Management 7.3 Risk Identification Steps 7.4 SWOT Analysis 7.5 Strategy Analysis 7.6 Pitfalls in Strategy 7.7 Management Analysis 7.9 Other Internal Risks CHAPTER 8 FINANCIAL RISKS 8.1 Importance of Financial Statements 8.2 Quantity of Financial Statements 8.3 Financial Analysis 8.4 Analytical Tools 8.5 Financial Leverage Ratios 8.6 Operational Ratios 8.7 Encapsulated Ratios Illustration CHAPTER 9 INTEGRATED VIEW OF RISKS 9.1 Relevance of Integrated View 9.2 Judgment 9.3 Identifying Significant EIIF Risks 9.4 Risk Mitigants 9.5 Types of Mitigants 9.6 Principles to be borne in mind while selecting Mitigants 9.7 Monitoring of Credit Risk 9.8 Credit Rating 9.9 Five Cs and EIIF Models Illustration: Credit Risks And Possible Mitigants PART 3 CREDIT RISKS—PROJECT & WORKING CAPITAL CHAPTER 10 CREDIT RISKS IN PROJECT FINANCE 10.1 Distinction of Project Finance 10.2 Types of Project Finance 10.3 Reasons for Project Finance 10.4 Parties Involved in Project Finance 10.5 Phases of Project Credit Risks 10.6 Project Credit Risks 10.7 Financial Study 10.8 Risk Mitigants Illustration CHAPTER 11 CREDIT RISKS IN WORKING CAPITAL 11.1 Definition of Working Capital 11.2 Working Capital Cycle 11.3 Difference of Working Capital from Fixed Capital 11.4 Working Capital Behavior and Volume Changes 11.5 Working Capital Behaviour and Changes in Trade Terms 11.6 Working Capital & Cash Flows 11.7 Long-Term Contribution towards WC or (NWC) 11.8 Working Capital Ratios 11.9 Working Capital Risks 11.10 Impact of W/C Risks 11.11 Risk Mitigants 11.12 Working Capital Financing Illustration PART 4 CREDIT PORTFOLIO RISKS CHAPTER 12 INTRODUCTION TO CREDIT PORTFOLIO RISKS 12.1 Criticality of Portfolio Credit Risks 12.2 Benefits of Portfolio Credit Risk Study 12.3 Credit Portfolio Vs Equity Portfolio 12.4 Credit Portfolio Risk Vs Return 12.5 Portfolio Representation CHAPTER 13 CREDIT RISK AND BASEL ACCORDS 13.1 What is Basel Committee? 13.2 1988 Basel Accord 13.3 Basel 2 (New) Accord 13.4 Basel Accords and Credit Portfolio CHAPTER 14 PORTFOLIO CREDIT RISKS 14.1 Systematic Risk 14.2 Diversifiable Risk CHAPTER 15 INTERACTION OF FIRM RISKS AND PORTFOLIO RISKS 15.1 Firm Credit Risks & Portfolio Credit Risks in Daily Life 15.2 Decline and Fall of Credit Assets 15.3 Impact of Portfolio Credit Risks 15.4 Portfolio Provisioning 15.5 Managing of Firm & Portfolio Credit Risks Vs Organizational Conflict CHAPTER 16 PORTFOLIO CREDIT RISK MITIGANTS 16.1 Traditional Diversification 16.2 Scientific Diversification of Credit Portfolio 16.3 Credit Derivatives 16.4 Value @ Risk 16.5 Buying and Selling of Credit Assets PART 5: CREDIT PRICING CHAPTER 17 PRICING BASICS 17.1 Credit Pricing in Non Financial Institutions 17.2 Credit Pricing in Financial Institutions 17.3 Pricing Structure 17.4 Credit Risk Vs Return 17.5 Other Factors to be considered while Pricing A Credit 17.6 Usual Methods of charging Interest 17.7 Credit Risk Pricing Model Illustration CHAPTER 18 PRICING METHODS 18.1 RORAC Based Pricing 18.2 Price Determination Based on Market 18.3 Economic Profit Based Pricing 18.4 Cost Plus Pricing 18.5 Structured Pricing 18.6 Grid Pricing 18.7 Net Present Value (NPV) Pricing 18.8 RANPV (Risk Adjusted NPV) Pricing PART 6 THE LAST LINE OF DEFENCE—SECURITY CHAPTER 19 SECURITY BASICS 19.1 Need For Security 19.2 Merits and Demerits of a Security 19.3 Attributes of a Good Security 19.4 Security and Pricing 19.5 Covenants as Security 19.6 Security Value and Systematic & Unsystematic Risks 19.7 Credit Risk Grade and Recovery Rates CHAPTER 20 TANGIBLE AND INTANGIBLE SECURITY 20.1 Tangible Security 20.2 Intangible Security 20.3 Methods of taking Security 20.4 Realizing Security APPENDIX A APPENDIX B BIBLIOGRAPHY INDEX