Annual Review incorporating Request PDF
7 Pages3408 Words35 Views
Added on 2021-06-15
Annual Review incorporating Request PDF
Added on 2021-06-15
ShareRelated Documents
Risk Assessment Framework February 2015 Version 1.0General Commercial-Business (TSNR > JMD Equivalent of US$1MM)Exposure CL(J$000’s)CurrencyDate RAFPrepared(MM/DD/YYYY)Last ApprovedBRRProposed BRRMicheal450000DOLLAR14/03/20181+ Michel QuinnerJustin Quinne0Double-click and typename of second borrowerDouble-click and typeCIF of second borrower0Double-click and typename of third borrowerDouble-click and typeCIF of third borrower0I. PURPOSE OF RAFAnnual Review incorporating request for new funds.II. EXECUTIVE SUMMARYThe RAF looks to assess the current conditon of the company by assessing their financial statements and current operational activities so that they understand the current sceanrio of the company and accordingly grant or reject the loan application III.LEGAL STRUCTURE AND GOVERNANCE ISSUESThe manufacturing policies and the regulations constructed by the Government of the nationIV.INDUSTRY RISK – 10%Criteria-Based Rating:1 M(Double Click to Select Rating)Moderate RiskPage 1 of 7
Risk Assessment Framework February 2015 Version 1.0General Commercial-Business (TSNR > JMD Equivalent of US$1MM)V.MARKET & COMPETITIVENESS – 20%Criteria-Based Rating: 1 M(Double Click to Select Rating)Recommended Rating:1 M(Double Click to Select Rating, if required)Double-click and discuss Market and Competitiveness herePrice Influence Discussion:Select below, the statement which best describes the client: or select here if unable to reliably rate the borrower attribute Rating 2+ 2 2- 3+ 3 or worse Price Influence Price Setter. Is the established price setter in the market. All other participants follow suit. Strong ability to influence pricing. Some ability to influence pricing. Price taker. No ability to influence price. Forced to sell below cost. Has a certain amount of market share and therefore is able to influecne pricingCompetitive Position Discussion:Select below, the statement which best describes the client: or select here if unable to reliably rate the borrower attribute Rating 2+ 2 2- 3+ 3 or worse Competitive Position Market Leader – Dominant player in the marketplace in size, reputation and purchasing power. Market participant who occupies a well-defined, defendable niche position that can attract above average returns. Is well-known in the market but vulnerable to new entrants. Small and/or undifferentiated market participant. Very small market share. Is threatened by new entrants. Has a position in the market because of their customer base and brand loyaltyii.Purchasing Power Discussion:Select below, the statement which best describes the client: or select here if unable to reliably rate the borrower attribute Rating 2+ 2 2- 3+ 3 or worse Purchasing Power Strong bargaining power with suppliers such that terms are superior to other competitors. Can procure necessary production inputs onpreferred terms. Has secure access to production inputs. Has access to production inputs, however has minimal bargaining power, andsupply could be suspect in times of scarcity. Access to inputs is uncertain and company struggles to obtain supply. The purchassing power is moderate as they have a good relationship with their suppliersPage 2 of 7
Risk Assessment Framework February 2015 Version 1.0General Commercial-Business (TSNR > JMD Equivalent of US$1MM)Value Added Discussion:Select below, the statement which best describes the client: or select here if unable to reliably rate the borrower attribute Rating 2+ 2 2- 3+ 3 or worse Value Added Customized or differentiated product orservice that can command margins well above average. Customized or differentiated product or service that can command margins above average. Product /Service effectively differentiated from commodity status. Commodity product/service. N/a The products manufactiured have their uniqueness and therefore are able to generate revenues above marginGeographic Diversification Discussion:Select below, the statement which best describes the client: or select here if unable to reliably rate the borrower attribute Rating 2+ 2 2- 3+ 3 or worse Geographic Diversification Well diversified across int’l, national and regional markets with dominant market position. Well diversified in national markets. Limited to regional markets only. Local marketplace presence only. N/a. The company is able to establish their market in the national marketCustomer Concentration Discussion:Select below, the statement which best describes the client: or select here if unable to reliably rate the borrower attribute Rating 2+ 2 2- 3+ 3 or worse Customer Concentration Well-diversified. Top 5 customers contribute less than 20% of revenues. Diversified. Top 5 customers contribute less than 35% of revenues. Slightly diversified. Top 5 customers contribute less than 50% of revenues. Highly dependent on one customer who contributes greater than 25% but less than 50% of revenues. Heavy concentration I.e. Unable to survive loss of a key client who contributes more than 50% of revenue. The company looks to diversify their customer base in order to increase their extent of profitPage 3 of 7
End of preview
Want to access all the pages? Upload your documents or become a member.