Advanced Collateral Control Virtual

Overview

One of your borrowers may be setting out to defraud you right now. How good an adversary are you? Will it be easy for them to tweak a few numbers and inflate their advance, or are you on your game? 

Advanced Collateral Control is a four-day virtual workshop covering every aspect of collateral monitoring, operations management and loan administration. The program will give you the opportunity to learn how experts think from various perspectives on operations. Our goal is to help you build an impenetrable defense against fraud. Participants will discuss a variety of topics, including trend analysis, cash analysis, debtor concentrations, risk analysis, documentation, and fraud detection.

For upcoming workshop dates, click here.

What you will learn

  • Key terminology
  • Calculating ineligibles
  • Dilution and advance rates
  • Red flags and problem loans
  • Financial spreadsheet analysis techniques
  • Risk factors in various types of collateral
  • Cash analysis and accounts
  • Debtor concentration and verification
  • Documentation, UCC and insurance
  • Fraud prevention and detection
  • Role of loan administrator in supporting field examinations
  • Communication skills

Who should attend

Program Level: Intermediate / Advanced

Operations, collateral analysts and management and loan administration personnel with a minimum of 12 months of experience. Also underwriters and relationship managers with collateral knowledge.

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Curriculum

Session 1: Risk Management Principals in Operations

Key Elements of Risk Management in Operations

  • ABL and the cash conversion and cash-to-cash cycles
  • Systematic overview of risk and potential loss, and exits routes
  • Understanding fraud and contributing factors
  • Identify key areas where information is vulnerable to manipulation
  • What happens in a workout and bankruptcy and how that can lead to loss
  • Review of key collateral control processes in the context of loss reduction
  • The art of questioning and why it is so important

The Borrowing Base Certificate

  • Overview of liquidation and key issues that arise
  • How advance rates and dilution reserves are calculated and used
  • Verify that the A/R ledger is consistent with backup information
  • Verification calls to customers
  • Calculating A/R ineligibles in a waterfall to avoid double-counting
  • Calculating inventory ineligibles
  • Calculating availability
  • Over-advances

UCC filings

  • Key principles and risks to be aware of

Session 2: Trend Card Analysis and Other Indicators of Risk

  • The use of trend cards
  • Key parameters to observe
  • Examples of trend card analysis
  • Specific things to watch, e.g. internal consistency
  • Red flags that indicate increased risk
  • Key financial statement indicators that might indicate increased risk
  • Case studies

Session 3: A/R, A/P and Cash Management

  • A/R Ineligibles – advanced categories
  • Credit insurance
  • A/R and A/P turnover and the cash-to-cash cycle
  • Cash reconciliations and cash management
  • Detecting and evaluating pre-billing
  • Credit memo tests
  • Key tests performed by the field examiner on A/R, A/P and cash
  • Case studies

Session 4: Inventory

  • The inventory cycle and how it affects collateral value
  • Understanding inventory liquidation scenarios
  • Categorizing inventory - RM / WIP / finished goods
  • Inventory ineligibles
  • Key tests and investigations performed by the field examiner on inventory
  • Inventory reporting
  • Turnover and gross profit
  • Inventory valuation considerations
  • Case studies