Are you a naturally born leader who can make decisions easily and confidently? Even better, can you consider all the facts and variables before reaching that decision? Then credit analysis might be a job to consider.
Credit analysis is the process by which a company calculates the creditworthiness of the business. It involves both honoring financial obligations and auditing financial records. As a manager, you may work in a bank setting or with a lending company. Whatever field you choose, in this position you analyze the borrower and your company’s financial situation. Based on all these complexities it’s time to assign a rating to a borrower.
Now it is true that a loan officer or supervisor is usually in charge of accepting or rejecting a loan based on creditworthiness and credit risk. As the credit analysis manager, you create the business logic by which all of these individuals act. You estimate the probability of default, according to the timetable and figures, and then decide on credit risk. You set the credit limit, based on trend analysis, ratio, and individual circumstances, such as collateral and credit history.
You won’t be personally overseeing every case but will implement the systems required so that loan officers and supervisors under you can make these informed decisions on your behalf. A credit analysis manager strategizes on ways to better determine credit risk and figure out how to make the loan profitable. Your work is to review and continue to monitor all practices happening with the business and developing new procedures that will maximize business. You work hard to prevent loss and assume responsibility for credit issues, and for averages of default.
Basic accounting and finance skills are required, which is why most companies will only hire bachelor’s degree graduates. This formal education will give you the advantage over high school diploma graduates, and will teach you many of the important processes of lending and credit. Of course, this is assuming that you take a study program in a related field to banking, which you should.
Work experience as a manager or as a top performing agent or officer will help you to learn how the business operates—the procedures that make the process possible. Additional skills to brush up on might include independent thinking, the ability to think outside the box, and excellent communication skills.
Another important matter is that of working within your allotted time and resources. You will have to work with what the company gives you, accepting situations as is, without giving up the mission. You also have to put forth strong leadership skills, have a very high work ethic, and become a dealmaker who can sell ideas to staff and borrowers.
Remember that this position is all about decision making, and your ability to assess the financial situation and teach others the proper course of action. Start by educating yourself so that you quickly establish trust among colleagues, showing them that you have business acumen.