焊接教学课件

焊接焊接焊接的实质：利用热能加速金属原子间的扩散，由于金属原子间的吸引力使金属之间的连接处形成牢固的合金结合在一起。焊接的实质：利用热能加速金属原子间的扩散，由于金属焊接的实质：利用热能加速金属原子间的扩散，由于金属原子间的吸引力使金属之间的连接处形成牢固的合金结合在一起。锡焊的特征：焊锡和元件之间呈浸润状态焊接的实质：利用热能加速金属原子间的扩散，由于金属原子间的浸润状态非浸润状态浸润状态非浸润状态正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接正确焊接正确焊接正确焊接正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接正确焊点：牢固，光洁，大小适中正确焊点：牢固，光洁，大小适中焊锡用量过多焊锡用量过多焊锡用量太少焊锡用量太少虚焊：印制板铜泊加热不足虚焊：印制板铜泊加热不足虚焊：印制板铜泊加热不足虚焊：印制板铜泊加热不足虚焊：印制板铜泊加热不足虚焊：印制板铜泊加热不足虚焊：印制板铜箔加热不足虚焊：印制板铜箔加热不足错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接

虚焊：表面有氧化层，不洁净虚焊：表面有氧化层，不洁净有毛刺；加热时间控制不当有毛刺；加热时间控制不当加热时间太长，印制板铜箔起翘，脱落加热时间太长，印制板铜箔起翘，脱落焊接的要点：1.控制焊锡用量

2.控制加热时间焊接的要点：1.控制焊锡用量焊接的实质：利用热能加速金属原子间的扩散，由于金属原子间的吸引力使金属之间的连接处形成牢固的合金结合在一起。锡焊的特征：焊锡和元件之间呈浸润状态焊接步骤：1.加热2.加焊锡（松香）3.撤离焊接的要点：1.控制焊锡用量

2.控制加热时间焊接焊接的实质：利用热能加速金属原子间的扩散，由于金属原子间的CreditRiskManagement

EnhancingYourBottomLineEbrahimShabudinManagingDirectorDeloitte&ToucheLLPTheAFP23rdAnnualConferenceNewOrleansNovember3-6,2002CreditRiskManagement

EnhanciCreditBackgroundThoroughidentificationandaccuratemeasurementofcreditrisk,supportedbystrongriskmanagementcanhelpimprovethebottomline…..Anuncertainandvolatileeconomic environmentsignificantlyimpactsthisability…..Thedesiretogrowandturninoutstanding resultshasatendencytoputpressureonthe checksandbalanceswithinbusinessesCreditBackgroundThoroughidenValuePropositionCreditplaysacriticalrolein“selling”productsandservicesExpandsrevenueopportunitieswithcreditworthy,incrementalcustomersUtilizesinnovativestructurestosupportbusinessrelationshipsEffectivecreditriskmanagementlimitscreditlossesandprovidesstablecashflowsandearningsMarketplacerewardscompaniesexhibitingearningsandcashflowstabilitywithhigherP/EmultiplesMarketplacepenalizescreditinducedvolatilityand“surprises”RaisesquestionsaboutqualityofmanagementValuePropositionCorporateCreditRiskCompaniesareexposedtosignificantlevelsofcreditriskemanatingfromdifferentsourcesAccountsReceivablesOtherNotesReceivablesBuyerandFranchiseFinancingWithRecourseFinancingProjectFinanceStructuredTransactionsLeaseswithRecourseDerivativesExposuresFX,InterestRateRisk,Commoditiesetc.CollateralRiskParentorThirdPartyGuaranteesCommercialandStandbyLettersofCreditNotealsothatCriticalSupplierstothecompanymayposespecificcreditriskCorporateCreditRiskCompaniesDSOImpact…anexampleActualCompanyAPeerAverageQ3A/R$295,396,000Q3Sales$261,201,000\DSOs=124*51.3HypotheticalDCashDSOs51.3Q3Sales$261,201,000\Q3A/R=$122,002,230+$173,393,770*Equals295.4M/261.2Mx90(ornumberofdaysinsalesperiod)DSOImpact…anexampleActualCCreditasaFacilitatorCreditriskmanagementisimportant

CreditisafacilitatorofbusinessgrowthandperformanceHighbusinessmarginstendtoattractlowerqualityclientsandthereforehigherriskprofiletomanageClients(buyers)maybeconcentratedinselectedindustriesandprovidelimitedportfoliodiversificationopportunityPoorcreditriskmanagementresultinginnegativeimpacttobottom-lineisheavilypenalizedbymarketsCreditasaFacilitatorCreditCreditStrategy&RiskToleranceSpecificQuantifiableObjectivesManagementReviewMethodologyCreditStrategyStatementandRiskToleranceCoordinationwithBusinessPlanThebusinessstrategiesandobjectivesdrivetheestablishmentofcreditpoliciesandprocedures.Measurementandreportingaswellastheuseofcurrenttechnologiesenhancecreditdecision-makingandimproveriskmanagement.Theentireprocessiscontinuallyre-evaluatedandimproved.CreditStrategy&RiskToleranCreditRiskAreastoConsiderCreditPolicyCreditApprovalAuthorityLimitSettingPricingTermsandConditionsDocumentation:ContractsandCovenantsCollateralandSecurityCollections,DelinquenciesandWorkoutsExposureManagementAggregationControlPeriodicAccountReviewsPayments/AgingCreditConditionCompliancewithCovenants,TermsTechnology/ReportsTransactions/BookingsRisk-adjustedReturnSalesChannelsRiskStrategyUnderwritingStandardsCreditApplicationAnalysisBusiness/IndustryFinancialCreditCreditScoringandRatingsOrigination/AssessmentAdministrationMonitoring/ControlRiskManagementPortfolioManagementConcentrationDiversificationAllowanceforBadDebtsRiskMitigationObjectivesTypeofExposureInstrumentsorMethodsCreditRiskAreastoConsiderCValueCreationBusinessPerformanceMeasuresOrganizationsneedarigoroussetofmeasurestosupportcontinuousimprovementPerformance-basedmanagementutilizesmetricsthatmeasureactualperformanceagainstpredeterminedthresholds.Thethresholdsareestablishedtakingintoaccounttheorganization’sstrategy,operatingenvironmentandprocesscontrols.Themeasuresdrivevaluecreationandshouldsupportproblemidentificationandcorrection.BusinessStrategySystemsOperationsFinancePerformanceManagementValueCreationBusinessPerformSaleschannelsContracts&DocumentationCreditanalysisCreditlimitPricing&termsCreditAnalysisCreditDecisionsCollectionsCREDITPOLICYCollateralacceptancePortfoliomanagementFinancialanalysisDisposal/

RiskmitigationCollateralmanagementCustomermanagementExposuremeasurementManagementreportingExposureaggregationRecoveriesCreditscoringRiskratingRISKMANAGEMENTCreditRiskManagement’sInter-relatedActivitiesComplianceOriginationReportingTransactionsSaleschannelsContracts&DocuCreditPolicies

&Procedures

Analysis&RiskManagementGovernance,ControlandImplementation

MeasurementMethodologiesTechnology&DataIntegrityCreditStrategy&RiskTolerance

AcompleteandcoherentriskmanagementframeworkcontainsthefollowingelementsCreditRiskManagementCreditPolicies

&ProceduresANewParadigmAnewbusinessparadigmhadevolved:causingalackofrelianceongoodfundamentalanalysisTheideathatstockmarketvalueswouldcontinuetogoupindefinitelyIncreasinglycompetitive,complexandvolatilemarketplaceHigherthanexpectedactualdebtburdensExtensiverelianceonunrealisticfuturecashflowsFailuresincorporategovernanceQuestionablepersonalandcorporateethicsANewParadigmAnewbusinesspImplicationsforCorporateGovernanceCurrentorganizationstructurestoberevisitedClarityaroundrolesandresponsibilitiesNeedforhonesty,integrityandindependence(self-regulation)TechnicalexpertiseofpeopleandstrongmanagementprocessesImproveddisclosurerequirementsImportanceandimplementationofsanctionsIncreasedlegislationandcompliancerequirementsImplicationsforCorporateGovFoundation:CreditRatingandUnderwritingStandardsRiskIdentification,Origination,CreditAdministration,etc.ShortTerm:ManagingExpectedLossRiskIdentification,Transaction

Structuring,Approval&PricingDecisions,Reserving,etc.NearTerm:ManagingEconomicCapital/CreditVaRPortfolioRiskConcentration,RiskBasedLimits,etc.

Vision: ManagingRisk/ReturnPricingdecisions,Performancemeasurement,businessandcustomersegmentation,compensation,etc.AbusinessmodelviewofCreditRiskInfrastructurecomponentsCreditRiskManagement–StrategicVisionFoundation:CreditRatingandDevelopmentStagesFoundationStageincludesapplicationofriskidentificationmethodologies,riskscoringorratingsystemsandstrongunderwritingstandards

BasicStagetendstoincludemanagingonatransactionalbasisbyevaluatingspecificattributessuchasstructuring,collateralandpricing

AdvancedStagerepresentsmanagingonaportfoliobasisincludingaspectssuchasconcentrations,correlationsanddiversification

TheSophisticatedStageincludesapplicationofhighlydevelopedmeasurementtechniquesfortransactionsandportfolios,supportedbydecision-makingrelatingtosegmentsorbusinessesagainstestablishedhurdlerates.DevelopmentStagesFoundationSCreditRiskClarified

Creditriskisdefinedastheriskoflossorpotentiallossresultingfrom:DefaultincontractualobligationsbyacustomerMigrationinconditionandratingDeteriorationinperformance

Creditriskincludesbothanexpected(predictable)andunexpected(volatile)losscomponent.

CreditRiskClarified CreditrBusinesseshavetocontendwithExpectedandUnexpectedLossesExpectedLossesAnticipatedCostofdoingbusinessChargedtoprovisionsCapturedinpricingRelativelyeasiertomeasureAssessingexpectedlossincludesdeterminingexposure,defaultprobabilityandseverityUnexpectedLossesUnanticipatedbutinevitableMustbeplannedforCoveredbyreservesAllocatedtobusinessesDifficulttomeasureAssessingunexpectedlossrequiresmakingqualitativejudgmentsaroundpotentialvolatilityofaveragelossesBusinesseshavetocontendwitCreditRiskManagementExplainedAlthoughcreditriskmaybedifficulttomeasureitisimportanttoestimateandmanage

WhatdoesCreditRiskManagementmean?Itrepresentsaninstitution’sabilitytoproperlyidentifyandevaluatethepotentialriskofdefaultinpaymentofobligationsofcustomersItincorporatesthefirm’sabilitytoeffectivelymanageandcontrolthisexposureinawaythatisconsistentwiththeinstitution’sbusinessstrategy,riskappetiteandcreditcultureCreditRiskManagementExplainImportantBuildingBlocksEffectiveCreditRiskManagementrequiresClearoriginationandunderwritingstandardsAstrongcorporateandcreditcultureHighlydevelopedriskmeasurementtechniquesAbilitytorecognizeandcoverexpectedandunexpectedlossesPricingcommensuratewithrisksundertakenMethodologiestoassessnetprofitcontributionsbycustomersandappropriatebusinesssegmentsProperallocationofcapitalandmanagementresourcesInorderto:Improveoverallcorporateperformance,measuredbyahigherEPSorP/Eratio(ormarketvalue)ImportantBuildingBlocksEffecCreditPolicyandProcessCreditPolicyshouldbeclearandconciseCreditUnderwritingStandardsmustbedevelopedandincludedinpolicyCreditProcessesshouldbereasonableandallowquickresponsetoclientsHealthybalancebetweensalesandcreditapprovalshouldexistandberespectedCreditPolicyandProcessCrediRiskMonitoringExposuremustbecompleteandcurrentRegularreportingandupdatingofclients’paymentperformanceMinimumannualreviewsofclientsshouldbeperformedFinancialconditionsshouldberegularlyassessedRequiredactionmustbeinitiatedandfollowupmusttakeplaceRiskMonitoringExposuremustbContractTermsandDocumentationContractnegotiationsmusttakeplaceattherightlevelintheorganizationAppropriateapprovalsmustbeobtainedInternalorexternallegaldepartmentsmustdocumentcompletelyTermsandconditionsshouldbeunderstoodandcompliancemechanismputinplaceExceptionsmustbereportedandmanagedurgentlytoresolutionContractTermsandDocumentatiRiskRatingSystemEffectivenessCreditScoringisgenerallyusedto“riskrate”homogeneousportfoliosHighestapplicabilityisinconsumerandretailportfoliosSomeadvancedscoringsystemsarebeingmigratedforuseinrating“middlemarket”clientsSuchmodelsareonlyasgoodastheunderlyingassumptions InternalcreditratingsystemsaredifficulttoassessandareoftennotindependentlyvalidatedClientrelationshipmayinterferewithobjectiveassessmentofrisksRatingcriteriausuallyamatterofpracticeratherthanwrittenpolicyRatingsarenotconsistentovertimeQualitativecreditassessmentsoftenlagcurrentmarketinformationInstitutionsoftenassume

amappingwithexternalratingsinordertoquantifycreditriskRiskRatingSystemEffectiveneEffectiveRiskRatingSystemsSufficientgranularityofriskratingcategoriesAccurateandtimelyassignmentofratings

ClearandconsistentapplicationofdefaultdefinitionPeriodiccalibration,triangulationandvalidationofriskratingsAccurateidentificationofmigrationoftransactionsandportfolios(asreflectedbyupgradesanddowngradesinratings)EffectiveRiskRatingSystemsSCreditEvaluation:FinancialFactorsGettheinformationyouneedtomakeafullanalysisSomeinformationwillneedtobecross-checkedandobtainedonaregularandtimelybasisBeconstructivelycynical:newbusinessmodelsaredifficulttopulloffBecognizantofdelayingtacticsNumbersdon’ttellthewholestory!CreditEvaluation:FinancialFCreditEvaluation:QualitativeFactorsEvaluationofsubjectivefactorsisoftentimesmoreimportantthanthenumericalanalysisPeoplemakeabusiness:visions,valuesandstrategiesareonlywordsunlesspeopleimplementthemManagement,industry,product,geography,competitionetc.allinfluenceresultsandmustbeproperlyassessedAnalysis-paralysismayleadtowrongdecisionsCreditEvaluation:QualitativeArtandScienceofJudgmentGettingaccesstothebestclientsandalltherelevantinformationisachallengeEnsuringproperanalysisisdonerequiresastrongcorporatecultureUtilizingqualifiedresourcesbothinternallyandexternallyenhancestheresultsOftenthelackofthewilltoactiswhatcauseshighlossesArtandScienceofJudgmentGetConcludingCommentsCompaniesthatmeasureandmanagecreditriskinapro-activemannerwillbenefitfromafavorableriskprofileresultinginHigherrevenueLowerlossesImprovedefficienciesHigherEPS,P/EratiosandmarketvaluesConcludingCommentsCompaniestConcludingCommentsRiskAssessmentandLimitManagementCreditInfrastructureandPortfolioManagementCreditAnalyticsSupportCreditTechnologyEnablementCreditQualityCreditUnderwritingRiskRatingSystemEffectivenessCounterpartyandPortfolioLimitsOrganizationalStructurePoliciesandProceduresTechnologySelectionandImplementationProblemAssetManagementRiskRatingCalibrationTransactionPricing,StructureandSupportDefaultProbabilityandRecoveryCalibrationCreditReserveMethodologyRiskBasedPricingModelsRiskAdjustedReturnAnalysisPortfolioValueMeasurementCreditRiskMeasurementCreditPerformanceScorecards

InternalSoftware

ExternalVendorSoftwareConcludingCommentsRiskAssessAppendix:BusinessProposalChecklistBusinessProposalSummaryCustomer,Rating,LegalStatus,LineofBusinessGuarantor,ifany…sameCollateral,ifany…truevalueexplainedOtherSupport,ifany...LegalormoralonlyTheTransaction…risksandmitigationAmount,purpose,termsandconditionsSourcesofrepayment…clearlyidentifiedClientpaymenthistoryandrelationshipAppendix:BusinessProposalChAppendix:BusinessProposalChecklistRationaleandAnalysisCustomer,Guarantor,Collateral,SupportFacilityDescriptionAmount,purpose,tenor,pricing,terms,conditions,covenants,restrictionsetc.Consideraffectonabovee.g.newleverageFacilityRating?RepaymentCapacityFuturecashflow,conversionofassetsetc.ConsistencywithCreditStrategyandPolicyConfirm,andidentifyanyexceptionstopolicy,underwritingstandards,orprocessRiskadjustedreturnacceptabilityAppendix:BusinessProposalChAppendix:BusinessProposalChecklistClientRelationshipBusinessstrategy:increase,maintainordecreaseexposureorexitrelationshipConsiderrelationtorating,latestriskprofileandpaymentperformanceCustomerprofitability:riskadjustedreturn,revenue,fees,directandallocatedcostsetc.AnyconflictsofinterestorspecialconcernsAppendix:BusinessProposalChAppendix:BusinessProposalChecklistMacroAnalysisBusinessEnvironmentReviewCustomer’scompetitivemarketpositionandfutureindustryprospects:size,cycle,volatility,newentrantsStrengthofcustomer’sbusinessandfinancialstrategiesManagementEvaluation:competency,experienceandeffectivenessAppendix:BusinessProposalChAppendix:BusinessProposalChecklistCustomerAnalysisCompanyhistory,background,objectivesandperformanceRelevanceandstrengthoffuturebusinessplansConsiderseasonalityandscenarioanalysisPrimaryandsecondarysourcesofrepaymentHistoricalfinancialcapacityandanalysisoffutureperformance:sales,profitability,workingcapital,liquidity,cashflow,leverage,tangiblenetworthetc.QualityofearningsAbsoluteandratioanalysisPeercomparisonsAppendix:BusinessProposalChAppendix:BusinessProposalChecklistStrengths,WeaknessesandRecommendationKeyfactorsthatcouldjeopardizecollection:environmentorcompanyspecificAnymitigatingfactorsConsiderprobabilityandimpactConsiderallsourcesofrepayment:primary,secondaryandtertiary,includingaccesstocapitalmarkets,refinancingetc.SummarizestrengthsandweaknessesandconcludewitharecommendationAppendix:BusinessProposalCh焊接焊接焊接的实质：利用热能加速金属原子间的扩散，由于金属原子间的吸引力使金属之间的连接处形成牢固的合金结合在一起。焊接的实质：利用热能加速金属原子间的扩散，由于金属焊接的实质：利用热能加速金属原子间的扩散，由于金属原子间的吸引力使金属之间的连接处形成牢固的合金结合在一起。锡焊的特征：焊锡和元件之间呈浸润状态焊接的实质：利用热能加速金属原子间的扩散，由于金属原子间的浸润状态非浸润状态浸润状态非浸润状态正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接1。加热正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接2。加焊锡（松香）正确焊接正确焊接正确焊接正确焊接正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接3。撤离正确焊接正确焊点：牢固，光洁，大小适中正确焊点：牢固，光洁，大小适中焊锡用量过多焊锡用量过多焊锡用量太少焊锡用量太少虚焊：印制板铜泊加热不足虚焊：印制板铜泊加热不足虚焊：印制板铜泊加热不足虚焊：印制板铜泊加热不足虚焊：印制板铜泊加热不足虚焊：印制板铜泊加热不足虚焊：印制板铜箔加热不足虚焊：印制板铜箔加热不足错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接错误焊接

虚焊：表面有氧化层，不洁净虚焊：表面有氧化层，不洁净有毛刺；加热时间控制不当有毛刺；加热时间控制不当加热时间太长，印制板铜箔起翘，脱落加热时间太长，印制板铜箔起翘，脱落焊接的要点：1.控制焊锡用量

2.控制加热时间焊接的要点：1.控制焊锡用量焊接的实质：利用热能加速金属原子间的扩散，由于金属原子间的吸引力使金属之间的连接处形成牢固的合金结合在一起。锡焊的特征：焊锡和元件之间呈浸润状态焊接步骤：1.加热2.加焊锡（松香）3.撤离焊接的要点：1.控制焊锡用量

2.控制加热时间焊接焊接的实质：利用热能加速金属原子间的扩散，由于金属原子间的CreditRiskManagement

EnhancingYourBottomLineEbrahimShabudinManagingDirectorDeloitte&ToucheLLPTheAFP23rdAnnualConferenceNewOrleansNovember3-6,2002CreditRiskManagement

EnhanciCreditBackgroundThoroughidentificationandaccuratemeasurementofcreditrisk,supportedbystrongriskmanagementcanhelpimprovethebottomline…..Anuncertainandvolatileeconomic environmentsignificantlyimpactsthisability…..Thedesiretogrowandturninoutstanding resultshasatendencytoputpressureonthe checksandbalanceswithinbusinessesCreditBackgroundThoroughidenValuePropositionCreditplaysacriticalrolein“selling”productsandservicesExpandsrevenueopportunitieswithcreditworthy,incrementalcustomersUtilizesinnovativestructurestosupportbusinessrelationshipsEffectivecreditriskmanagementlimitscreditlossesandprovidesstablecashflowsandearningsMarketplacerewardscompaniesexhibitingearningsandcashflowstabilitywithhigherP/EmultiplesMarketplacepenalizescreditinducedvolatilityand“surprises”RaisesquestionsaboutqualityofmanagementValuePropositionCorporateCreditRiskCompaniesareexposedtosignificantlevelsofcreditriskemanatingfromdifferentsourcesAccountsReceivablesOtherNotesReceivablesBuyerandFranchiseFinancingWithRecourseFinancingProjectFinanceStructuredTransactionsLeaseswithRecourseDerivativesExposuresFX,InterestRateRisk,Commoditiesetc.CollateralRiskParentorThirdPartyGuaranteesCommercialandStandbyLettersofCreditNotealsothatCriticalSupplierstothecompanymayposespecificcreditriskCorporateCreditRiskCompaniesDSOImpact…anexampleActualCompanyAPeerAverageQ3A/R$295,396,000Q3Sales$261,201,000\DSOs=124*51.3HypotheticalDCashDSOs51.3Q3Sales$261,201,000\Q3A/R=$122,002,230+$173,393,770*Equals295.4M/261.2Mx90(ornumberofdaysinsalesperiod)DSOImpact…anexampleActualCCreditasaFacilitatorCreditriskmanagementisimportant

CreditisafacilitatorofbusinessgrowthandperformanceHighbusinessmarginstendtoattractlowerqualityclientsandthereforehigherriskprofiletomanageClients(buyers)maybeconcentratedinselectedindustriesandprovidelimitedportfoliodiversificationopportunityPoorcreditriskmanagementresultinginnegativeimpacttobottom-lineisheavilypenalizedbymarketsCreditasaFacilitatorCreditCreditStrategy&RiskToleranceSpecificQuantifiableObjectivesManagementReviewMethodologyCreditStrategyStatementandRiskToleranceCoordinationwithBusinessPlanThebusinessstrategiesandobjectivesdrivetheestablishmentofcreditpoliciesandprocedures.Measurementandreportingaswellastheuseofcurrenttechnologiesenhancecreditdecision-makingandimproveriskmanagement.Theentireprocessiscontinuallyre-evaluatedandimproved.CreditStrategy&RiskToleranCreditRiskAreastoConsiderCreditPolicyCreditApprovalAuthorityLimitSettingPricingTermsandConditionsDocumentation:ContractsandCovenantsCollateralandSecurityCollections,DelinquenciesandWorkoutsExposureManagementAggregationControlPeriodicAccountReviewsPayments/AgingCreditConditionCompliancewithCovenants,TermsTechnology/ReportsTransactions/BookingsRisk-adjustedReturnSalesChannelsRiskStrategyUnderwritingStandardsCreditApplicationAnalysisBusiness/IndustryFinancialCreditCreditScoringandRatingsOrigination/AssessmentAdministrationMonitoring/ControlRiskManagementPortfolioManagementConcentrationDiversificationAllowanceforBadDebtsRiskMitigationObjectivesTypeofExposureInstrumentsorMethodsCreditRiskAreastoConsiderCValueCreationBusinessPerformanceMeasuresOrganizationsneedarigoroussetofmeasurestosupportcontinuousimprovementPerformance-basedmanagementutilizesmetricsthatmeasureactualperformanceagainstpredeterminedthresholds.Thethresholdsareestablishedtakingintoaccounttheorganization’sstrategy,operatingenvironmentandprocesscontrols.Themeasuresdrivevaluecreationandshouldsupportproblemidentificationandcorrection.BusinessStrategySystemsOperationsFinancePerformanceManagementValueCreationBusinessPerformSaleschannelsContracts&DocumentationCreditanalysisCreditlimitPricing&termsCreditAnalysisCreditDecisionsCollectionsCREDITPOLICYCollateralacceptancePortfoliomanagementFinancialanalysisDisposal/

RiskmitigationCollateralmanagementCustomermanagementExposuremeasurementManagementreportingExposureaggregationRecoveriesCreditscoringRiskratingRISKMANAGEMENTCreditRiskManagement’sInter-relatedActivitiesComplianceOriginationReportingTransactionsSaleschannelsContracts&DocuCreditPolicies

&Procedures

Analysis&RiskManagementGovernance,ControlandImplementation

MeasurementMethodologiesTechnology&DataIntegrityCreditStrategy&RiskTolerance

AcompleteandcoherentriskmanagementframeworkcontainsthefollowingelementsCreditRiskManagementCreditPolicies

&ProceduresANewParadigmAnewbusinessparadigmhadevolved:causingalackofrelianceongoodfundamentalanalysisTheideathatstockmarketvalueswouldcontinuetogoupindefinitelyIncreasinglycompetitive,complexandvolatilemarketplaceHigherthanexpectedactualdebtburdensExtensiverelianceonunrealisticfuturecashflowsFailuresincorporategovernanceQuestionablepersonalandcorporateethicsANewParadigmAnewbusinesspImplicationsforCorporateGovernanceCurrentorganizationstructurestoberevisitedClarityaroundrolesandresponsibilitiesNeedforhonesty,integrityandindependence(self-regulation)TechnicalexpertiseofpeopleandstrongmanagementprocessesImproveddisclosurerequirementsImportanceandimplementationofsanctionsIncreasedlegislationandcompliancerequirementsImplicationsforCorporateGovFoundation:CreditRatingandUnderwritingStandardsRiskIdentification,Origination,CreditAdministration,etc.ShortTerm:ManagingExpectedLossRiskIdentification,Transaction

Structuring,Approval&PricingDecisions,Reserving,etc.NearTerm:ManagingEconomicCapital/CreditVaRPortfolioRiskConcentration,RiskBasedLimits,etc.

Vision: ManagingRisk/ReturnPricingdecisions,Performancemeasurement,businessandcustomersegmentation,compensation,etc.AbusinessmodelviewofCreditRiskInfrastructurecomponentsCreditRiskManagement–StrategicVisionFoundation:CreditRatingandDevelopmentStagesFoundationStageincludesapplicationofriskidentificationmethodologies,riskscoringorratingsystemsandstrongunderwritingstandards

BasicStagetendstoincludemanagingonatransactionalbasisbyevaluatingspecificattributessuchasstructuring,collateralandpricing

AdvancedStagerepresentsmanagingonaportfoliobasisincludingaspectssuchasconcentrations,correlationsanddiversification

TheSophisticatedStageincludesapplicationofhighlydevelopedmeasurementtechniquesfortransactionsandportfolios,supportedbydecision-makingrelat