Posted on 18/01/2013 in Home / Downloads / Credit information

For Dummies Guide: Understanding Credit Risk

Mitigate credit risk to make the right decisions
Understanding Credit Risk for Dummies

What does it take to become a modern-day credit manager? Take action against the increasing problem of fraud by learning how to safeguard your business and mitigate credit risk. Trade with confidence and make informed decisions about the companies you choose to do business with.

Learn how to become a valuable asset to your business by taking a holistic approach to credit risk and looking beyond a company’s annual report.

Optimal management of credit risk is vital to companies’ success in today’s marketplace. Smart businesses recognise this. They also appreciate what their financial group can bring to the table. Instead of waiting for a problem to occur, then going at it great guns, a proactive approach is more effective.

Today’s credit managers need to be able to implement well‐designed strategies to minimise credit risk and fraud. Easier said than done, you say? Honestly, isn’t everything? But you have an ace up your sleeve. You have this book! And you’ll glean tons of valuable information that will give you a better understanding of the problem, how to head it off, and how to become a hero in the boardroom!

To be a savvy credit manager you need to do the following:

  • Take a holistic approach to credit risk that values your gut feeling as well as a diligent review of a company’s annual report.
  • Be aware of the potential risks and pitfalls you may encounter
  • Learn to read between the lines of an annual report to gain a more comprehensive view of a company’s financial status.

  • Play nice with the sales department, gaining their trust and esteem so you can provide valuable input about the credit risk associated with a potential customer long before the ink is dry on the contract.

  • Stay abreast of what’s going on with your customers and the marketplace.

    Sound like a lot of information to digest at one time? Relax. We’ve packed this small book with the basics in an easily understood format that will give you the head start you need.