Programme: Essential Underwriting Skills


Registration from 9.00

Day one: Start 9.30 - Finish 17.00
Day two: Start 9.30 - Finish 17.00



Legal entities

  • Sole Trader
  • Partnership
  • Limited Liability Partnership (LLP)
  • Private Limited Companies & Public Limited Companies (PLCs) – key differences and main risk considerations


Interpretation of financial accounts

  • Recording business transactions – the flow of money through a business
  • The Balance Sheet and the Profit & Loss Account
  • Key definitions: Assets, Liabilities, Capital, Revenue and Expense
  • Key concepts and conventions
  • Understanding depreciation, accruals and prepayments
  • Interpreting the balance sheet – tangible assets: fixed and current
  • Intangible assets: goodwill, intellectual property, brand name
  • The profit & loss account - the difference between profit & cash


Cash flow analysis/working capital

  • The importance of liquidity
  • Detailing the factors that affect cash flow
  • The concept of working capital - can it meet obligations?
  • The cash flow statement - cash flow dynamics/analysis


Key ratio analysis

  • Importance of ratio analysis
  • Interpretation of business performance using the power of ratio analysis
  • The main ratios: profitability, liquidity, investment

End of day one


Re-cap day one

Principles of Lending

  • Current experience and exposure – discussion
  • Risk assessment using different frameworks
  • Non-financial risks: asset, customer, external factors
  • Assessment of management, competition and market


Danger signals and corporate collapse

  • What are the warning signs of a business in distress?
  • Stages in the decline process
  • Common features of fraud
  • Managing higher risk accounts – basic outline

Financial questioning skills & persuasive report writing – an overview

  • Gathering the data
  • Key skills - open and closed questions
  • Structuring a persuasive report
  • Planning and content
  • The main focus – financial and non-financial risk analysis


Underwriting Lending Proposals     

  • Make a lending decision given a number of underwriting case studies


Presentation and debrief of underwriting decisions

End of course


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