As we are at a late stage of the current economic cycle we will start seeing more companies facing financial distress.

Combined with the rapid and disruptive changes in the business environment, losses on corporate credit exposures may be significantly higher than in previous economic cycles. So as part of a corporate risk analysis it is vital to assess warning signs. By contrast distressed corporates can present potentially attractive investment opportunities if it is considered likely that a company can deal with a crisis and survive.

To gain some insights into potential warning signs that indicate a company may experience financial distress as part of the evaluation of a qualitative and financial analysis of credit exposures to large corporates, please take a look at the video on this post and enrol in the video course on “Essential Elements of Financial and Qualitative Risk Assessment at a Time of Rapid and Disruptive Change”.

Here is a link to the video course, where you can download a free introductory module

If you are also interested in receiving a summary of the course content and a presentation summarising some red flags that indicate potential corporate financial distress please contact me.