Credit Risk Management
likelihood of successfully dealing with situations which arise in the
business in the future.
Any business will be affected to some extent by the staff. Some will be
more significantly dependent upon the technical skills of the staff, some
will be more dependent upon the presentational skills of the staff.
The analyst should establish a perception of the needs of the business
and identify how the management deal with each area.
The identification of the skills needed in the business, the current effect-
iveness in the performance of the staff; the flexibility in the workforce,
the overall quality and availability of the needed skills in the locality or
in the entire country, are important factors to understand. Without the right
people, without appropriate skills, in the right place, at the right time,
then no matter how well every other aspect of the business is managed
it will not be successful.
The strategies and policies towards the staff in particular development,
training, staff satisfaction and the industrial relations record will give
the analyst a good measure of the quality of the management and an
indicator of the ability of the business to continue to develop and have
a successful future.
Land and buildings
The nature of the business premises used and the plans for the future
will affect the ongoing future health of the business. The practical
adequacy and suitability of the buildings in the short and medium term
is clearly paramount.
Any aspects of the business activity which may create legal or commu-
nity obligations and responsibilities should be understood.
For example, a business dealing in toxic chemical products for example
must have suitable premises and controls in place.

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