Introduction to Business Risk
Intended for credit control staff and specialists.Basic financial
awareness ideal but not essential. A vitally important workshop
for those who are new to risk assessment and need to be involved
in the setting of credit limits. The course also serves as a useful
refresher for those specialists who need to brush up their financial
awareness skills.
1st Day - Introduction and Objectives
- Candidates to give their current level of financial experience and knowledge
- Objectives of the day explored and explained
Part One - The Balance Sheet
- What is a Balance Sheet - destroying the myths
- How and why does it balance?
- Introduction to the concept of Assets and Liabilities
Understanding Assets
- Current - Fixed - Intangible - Others
Understanding Liabilities
Exercise 1 - constructing a Balance Sheet for YOUR fictional business.
Video - The Balance Sheet Barrier
Part Two - The Profit and Loss Statement
- What does the statement tell us? What is its purpose?
- An understanding and analysis of the various margins
Exercise 2 - constructing a Profit and Loss Statement again for your business
Video - About Working Capital
Exercise 3 - To analyse briefly our fictional business (The financial statements give up their fundamental
secrets!)
2nd Day - Ratio Analysis and Risk Assessment
Part Three - Ratio Analysis
- What are the financial ratios?
- What do they tell us?
- Why use financial ratios?
- How do we use them?
Part Four - Case Study Exercise
- Review of case study company - 'LUCAS' (5 separate years from inception to liquidation)
Exercise 4 - Ratios and Case Study Analysis
Part Five - Trends
Exploring and recognising trends and their use in predicting -
a) future growth (potential success) or
b) declining results (potential failure)
Exercise 5 - Trends Analysis
