Credit Risk Management

Credit Risk Management

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likelihood of successfully dealing with situations which arise in the

business in the future.

People

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.