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Tuesday, January 13, 2015

Credit Management Magazine has Reviewed ‘Credit Risk Management – The Novel’

“This is the first narrative non-fiction novel to feature the true to life experiences of a team of professionals managing business-to-business credit risk, day-to-day. This is a ‘difficult to put down’ book, not one to gather dust on your shelf, or occasionally use for reference. There are a number of case studies that might pass you by, but will probably become relevant and applicable at some stage of your career.

Hard to imagine though it may be this is a credit management book featuring action. There are real life questions for the credit team to deal with. The team solves day-today problems in practical ways and discusses general issues as they add value constructively. There are interesting twists and turns, characters are developed, fascinating places are visited, and little known facts emerge. James and his colleague Jenny manage the credit risk for a global enterprise, and at the same time share their experience and knowledge to fellow team members and the reader. Great fun”


Credit Management Magazine is the journal of the CHARTERED INSTITUTE OF CREDIT MANAGEMENT
The Recognised Standard in Credit Management
December 2014 www.cicm.com
To read page 10 of the December issue, click here
© Chartered Institute of Credit Management

Friday, November 21, 2014

Now there are 16 Banking Groups Live on BPO

This list includes 6 of the top15 Trade banks (based on Cat 7 traffic)

ANZ - Australia & New Zealand Banking Group
Bank of China
Bank of Tokyo-Mitsubishi UFJ
Bangkok Bank
BNP Paribas
China CITIC Bank
CIMB - Commerce International Merchant Bankers Berhad
Commerzbank
Hua Nan Bank (Head Office: Taipei )
Korea Exchange Bank ( KEB )
Maybank - Malayan Banking Berhad
Siam Commercial Bank ( SCB Thailand )
Standard Chartered Bank ( SCB )
Türkiye Is Bankasi ( Isbank )
Turkish Economy Bank Inc. ( TEB )
UniCredit

Information as at November 17, 2014 supplied by SWIFT

As you can see there are plenty of banks to turn to for this service if yours is being unhelpful.

Ron Wells

Thursday, November 6, 2014

A Novel about Credit Risk Management ... No way! How can that work?

Credit Risk Management - The Novel (Part One) presents two cracking good stories for your enjoyment and enlightenment.

It is the first narrative non-fiction novel to feature the true to life experiences of a team of professionals managing business to business credit risk, day to day. This is intertwined with a parallel story that follows the adventures of Credit Exec and Secret Agent, James E Cricket, which provides an undercurrent of twists and turns.

Click this widget to browse inside a sample of this unique and innovative book, satisfy your curiosity….



Visit and follow the James E Cricket fictitious celebrity Facebook page to learn more about his early life, and other useful posts at www.facebook.com/jamesecricket.

Thursday, October 23, 2014

List of the 15 Banking Groups Now Live on BPO

This list includes 6 of the top 15 Trade banks (based on Cat 7 traffic)

ANZ - Australia & New Zealand Banking Group
Bank of China
Bank of Tokyo-Mitsubishi UFJ
Bangkok Bank
BNP Paribas
China CITIC Bank
CIMB - Commerce International Merchant Bankers Berhad
Commerzbank
Hua Nan Bank (Head Office: Taipei )
Korea Exchange Bank ( KEB )
Maybank - Malayan Banking Berhad
Siam Commercial Bank ( SCB Thailand )
Standard Chartered Bank ( SCB )
Türkiye Is Bankasi ( Isbank )
UniCredit

Information as at October 16, 2014 supplied by SWIFT

Plenty of banks to turn to for this service if yours is a laggard.

Ron Wells

Sunday, October 19, 2014

Routine Counterparty (CP) Credit Risk Reviews – Alternatives Proposed

Does ‘an Annual Review for every CP’ make sense?

Most text books and training sessions, hence most in-house credit policy documents, stipulate that every customer (and often suppliers as well) should be reviewed as to credit worthiness at least once every year. Such a review usually coincides with publication of annual financial statements by the Counterparty (CP).

This methodology harks back to the early half of the 20th century, after WWII, when change was linear (slow but steadily positive) and most Counterparties published audited financial statements or were fully covered by acceptable collateral.

Apart from the odd market collapse, each of which was discounted as an aberration and after which the steady state resumed, most CPs’ businesses progressed from year to year. Therefore the annual review merely served to satisfy auditors and bank regulators that enough diligence was being applied to keep the creditor companies and banks respectively safe from suffering excessive bad debt.

As we approached the second millennium, by the Gregorian calendar, the linear progress steady-state had evaporated but even as we draw near to 2015 most corporate and bank policy documents still require annual credit risk reviews for all Counterparties or Clients.

Credit Risk Review Policy Revision Recommendations

Regarding the timing and required depth of CP Credit Risk reviews each organisation should adopt a policy appropriate to its particular circumstances. Therefore this discussion highlights some alternative policy approaches in order to provide ideas to be considered by policy makers.
It is submitted that the most appropriate approach for a business to adopt may be the application of a different assessment and review policy to each of several sub-portfolios identified within the overall counterparty array.

TO READ THE FULL ARTICLE CLICK HERE

ALTERNATIVE RISK ASSESSMENT AND REVIEW POLICY OPTIONS DISCUSSED IN THE ARTICLE

Why not a ‘no credit analysis or review at all’ policy?
1. Building a sub-portfolio of diverse counterparties that are not financially transparent and/or are ‘start-ups’
2. Restricting CP exposures to a ‘short-list’ of what are considered low risk entities.
What about the 80% of Counterparties that warrant regular review?
1. Proposed Review-Minimum Policy for Relatively Minor Exposure CPs
2. Review Policy for CPs that do not Qualify for the Review-Minimum treatment

What about CPs that are Margined, should they be treated differently?

The Article Conclusion

The identification of sub-groups within your risk portfolio and application of the appropriate review policy to each will both improve the efficient use of expertise and reduce risk overall.

Adopting this approach will enable internal credit risk assessment and management experts to dedicate more time to monitoring higher risk counterparties and the relevant business environment. To read the article click here.

Thursday, October 2, 2014

To retain talent the role demands of Finance must change, by David Axson

In the linked video Dave Axson discusses the rôle that Finance Professionals should be allowed to play in businesses in order to retain and attract the talent that they so desperately need.
Dave Axson is author of The Management Mythbuster (John Wiley & Sons 2010) and MD of Accenture.

“What we are dealing with today is an environment where there are many more variables that could potentially impact your business. Twenty to twenty-five years ago you were concerned about your competitors down the street…..” click this link to view this short but interesting talk.

Monday, September 29, 2014

Eminent Prof. of Credit Management Recommends ‘Credit Risk Management – The Novel’

The Professor of Credit Management and MSc Finance, Programme Leader at a prestigious UK University, and Programme Leader for the Singapore Accountancy Academy (SAA-GE), has read and now recommends ‘Credit Risk Management – The Novel’.

To advise her decision she wrote as follows: “I have recommended your book to a few libraries and added it to my recommended reading (other reading) list.”

The printed version of Credit Risk Management – The Novel (Part One) is now available from eStoreT3P, Amazon.com and 11 country specific Amazon websites. It can also be purchased through the CreateSpace eStore.

This paperback version is available worldwide in other retail book stores; place your order with your favourite bookstore today.
The ISBN13 is 978-0-9576279-2-5.

This is not a text book, it is a story that follows the day to day work of a credit risk management team as they face and overcome various challenges. You are invited to 'listen in' to their conversations and read the outline of the solutions they employ. The detail of their solutions appears at the end of the book so reading the detail is optional.

There is a parallel story that follows the adventures of James E Cricket an Agent of the Office of Peace, which provides an undercurrent of twists and turns.

The Novel doubles as a reference book, which will be useful if you meet credit management challenges similar to those solved by the fictional credit team.

See: http://www.barrettwells.com to read a Five Star reader review posted on Amazon.com.