Westpac Group Core Lending Pathway

Description - Core Lending Pathway This program equips participants to complete a detailed risk assessment and overall risk profile of a client to inform credit decisions. Following the risk management process, participants will be equipped to use a range of risk analysis tools to identify and evaluate the risks and opportunities for a business and assess their impact on debt servicing capacity. The Financial Analysis topics explore how to interpret financial statements and use them to diagnose the actual and potential financial performance of a business. The Industry & Business Analysis topics explain how to use risk analysis tools to analyse the business’s external/internal environment and industry, and assess the robustness of a client's business model and management capabilities. The Client Risk profile topics integrate the financial and external risk analysis, in conjunction with potential risk mitigation strategies, to assess the impact on a business’s performance and its debt-servicing capacity. Based on this analysis the banker is well equipped to evaluate credit proposals. Learning Outcomes • Analyse and interpret a client's financial statements and explain the possible causes and impacts on historical and forecast debt servicing capacity • Identify and evaluate the risks and opportunities for a business arising from the external environment and industry, and develop a more holistic risk profile to inform credit decisions • Integrate results of financial and other risk analysis tools to develop an overall client risk profile that is suitable to inform credit decisions • Analyse a client's debt servicing capacity using quantitative metrics • Evaluate whether the use of debt is fit for purpose for the borrower and how to align the loan agreement with the requirements of both borrower and lender Key Topics • Financial Statements • Cash Flow Analysis • Financial Statement Analysis • External Environment Analysis • Industry Analysis • Business Model Analysis • Risk Assessment • Credit and Lending Analysis Activities • Self directed learning • Case studies, group work and in class exercises • Topic exams_assessed • Case study analysis_assessed Volume of Learning 127 Hours Credit 5 credit points