Credit Risk Management and Legal Compliance
Practice-oriented, ready to be applied to daily global debt collection and trade accounts receivable strategies upon completion, helping SMEs establish comprehensive credit approval, risk monitoring, and anti-fraud mechanisms.
Effective Credit Analysis and Account Supervision – Helping SMEs Reduce Bad Debt Risk
How to properly formulate credit analysis and account supervision to avoid bad debts is one of the most important operational topics for many SMEs. This course explores and elaborates on credit analysis assessment and account supervision strategies through practical case studies, helping SMEs reduce the risk of bad debts.
Course Outline
1. Core Framework of Credit Analysis Evaluation
- The 5 C's of Credit Analysis
2. Credit information gathering and file creation
- Company and Management Background
- Industry Analysis
- Business category and management techniques
- Company search
- Financial statements
- Payment Record
3. Credit Investigation and Financial Assessment
- Credit investigation and credit evaluation of lending companies
- Financial Statement Analysis
- How to determine the loan amount
- Key elements of scoring
4. Communication and Debt Collection Practical Techniques
- Establish a good communication mechanism with clients.
- Debt collection letter
- Effective telephone communication and techniques
- Asset Search
- Regular site visits
5. Credit Approval and Prevention Mechanisms
- Create "Credit Approval" forms and policies
- How to effectively use data from "positive" and "negative" databases to make credit approval decisions
- Effective data websites
- Tips to prevent being scammed
How to manage bad debt and fraud risk
Course Outline
Global credit risk management fundamentals
- Global Credit Risk Management and Trade Receivables Collection Practices
- How to conduct a credit risk assessment for potential sales customers
- How to effectively review the financial data of potential sales customers
2. Data Collection and Research Methods
- While complying with legal requirements and protecting personal data, obtain relevant information through open sources, business intelligence, and confidential insights.
- Effectively utilize credit references provided by banks and creditors.
- Apply data mining techniques and proactive investigative methods (including payment pattern analysis)
- Identify suspicious or unusual elements in credit applications
3. Credit Assessment and Debt Collection
- How to determine credit
- Effective steps for debt collection
- How to implement asset-tracking measures
4. Fraud Risk Defense and Detection
- Global Fraud Prevention and Detection Practices (Recommended by Professional Organizations)
- Establishing an effective fraud risk management program
- The Fraud Triangle: Pressure, Rationalization, Opportunity
- Why traditional internal monitoring systems fail to detect fraud
- Red Flags and Case Studies of Specialized Credit Fraud Schemes (Bankruptcy Fraud, Letter of Credit Fraud, Advance Fee Fraud)
- Hong Kong Scam Monitoring, Anti-Money Laundering Laws, Evidence, and Procedures
Courses are delivered by senior RMS lecturers, credit management specialists, and legal consultants. They integrate practical case studies with the latest Hong Kong regulatory requirements and is suitable for SME professionals in finance, legal, credit, and risk management roles.