Credit Risk Assessments

Introduction

The organization of the lecturing activities is based on the flipped classroom concept.  This requires extra efforts from the students and a well-balanced progression througout the semester.

The purpose of the course is to give the students a good introduction to methods for assessing credit risk, by having a critical view on historical financial data as well as by focusing on different types of business risk and the assessment of management's ability to execute the strategies and necessary actions.

Course content

Part 1 - Traditional areas of analysis

• Financial statements as source of information
• Measuring growith and profitability
• Measuring cash flows and operational degree of freedom
• Sensitivty analyses

Part 2 - Industry related issues

• Risk understanding
• Entrepreneur culture vs. established businesses
• Analysis of retail business
• Analysis of service-rendering companies
• Analysis of real estate business
• Analysis of mergers and other investment projects

Part 3 - A wholistic approach

• Analyses of strategies, plans and budgets
• Management control systems
• Basic valuation methods