Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Credit Risk Management

7,241 views

Published on

Published in: Business, Economy & Finance
  • Be the first to comment

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 />

×