Credit Risk Management

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Credit Risk Management

  1. 1.
  2. 2. The whole of Monocrystal’s Credit Risk<br />1 216 M Rub<br />
  3. 3. Monocrystal Credit Loss<br />3 M Rub<br />
  4. 4. Monocrystal Credit Loss<br />3 M Rub<br />P= 0,2%<br />
  5. 5. ?<br /> What is a Credit Risk?<br />How to assess the Risk?<br /> How to mitigate the Risk?<br />1<br />2<br />3<br />
  6. 6. 1<br />2<br />3<br />WHAT IS A CREDIT RISK?<br />?<br />
  7. 7. 1<br />2<br />3<br />type of financial risk<br />investor’s risk<br />
  8. 8. 1<br />2<br />3<br />HOW TO ASSESS THE RISK?<br />
  9. 9. 1<br />2<br />3<br />Credit Scoring model<br />
  10. 10. 1<br />2<br />3<br />Let’s investigate Altman’s formula<br />
  11. 11. 1<br />2<br />3<br />Z = 1,2К1 + 1,4К2 + 3,3К3 + 0,6К4 + 1,0К5<br />
  12. 12. 1<br />2<br />3<br />Z = 1,2К1 + 1,4К2 + 3,3К3 + 0,6К4 + 1,0К5<br />Z>3,0<br />
  13. 13. 1<br />2<br />3<br />HOW TO MITIGATE THE RISK?<br />
  14. 14. 1<br />2<br />3<br />Letter of Credit <br />Guarantees<br />Open-Account techniques<br />Document Draft Collection<br />FX contracts <br />
  15. 15. 1<br />2<br />3<br />Letter of Credit <br />Buyer<br />Seller<br />contract<br />Bank<br />L/C apl.<br />
  16. 16. 1<br />2<br />3<br />Letter of Credit <br />Buyer<br />Seller<br />contract<br />L/C<br />Bank<br />L/C apl.<br />
  17. 17. 1<br />2<br />3<br />Letter of Credit <br />goods<br />Buyer<br />Seller<br />contract<br />docs<br />L/C<br />Bank<br />L/C apl.<br />
  18. 18. 1<br />2<br />3<br />Letter of Credit <br />goods<br />Buyer<br />Seller<br />contract<br />payment<br />docs<br />L/C<br />Bank<br />L/C apl.<br />
  19. 19. 1<br />2<br />3<br />Letter of Credit <br />confirmed L/C<br />unconfirmed L/C<br />‘silent L/C confirmation’<br />standby L/C<br />
  20. 20. 1<br />2<br />3<br />Guarantees<br />independent/demand guarantee<br />surety bond<br />
  21. 21. DON’T WORRY, GUYS!<br />JUST A FEW SLIDES LEFT<br />
  22. 22. 1<br />2<br />3<br />Open-Account techniques<br />factoring<br />credit insurance<br />credit derivatives<br />
  23. 23. 1<br />2<br />3<br />Document Draft Collection<br />sight draft, “documents against payment”<br />avalized draft & forfeiting<br />
  24. 24. 1<br />2<br />3<br />FX contracts <br />forwards & futures<br />
  25. 25. WELLI TOLD YA.<br />THAT’S THE END<br />
  26. 26. Thanks for Attention!<br />

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