Credit Risk Management : A Guide to Sound Business Decisions

Rating:
Summary: A Review of Credit Risk Management
Review: The book is not comprehensive in going through the mechanics of actual credit analysis. It does not fully detail how a balance sheet, income statement, and cash flow statement come together to give a picture of the customer.

The book also neglects the first crucial part of credit analysis, that is, spreading statements. It does not mention how financial statements, whether they be accountant's report, company prepared, tax returns, etc., need to be altered before any analysis takes place.

Also, the book does not show the parts of cash flow analysis that need further investigation, such as lease expense. Information such as that on tax returns, personal financial statements, personal credit reports, corporate financial statements, etc. come together to accurately state a customer's position is also not detailed.

The book has good case studies, but it lacks the fundamentals of credit analysis.