Risk Management case studies, worked step by step

Cases
100
Traced to a firm
19
Topics
13
Hard
30
Topic
All topicsCapital and regulation8Corporate credit and ratings10Counterparty risk and CVA7Hedging a book8Investment and portfolio risk8Liquidity risk and ALM8Market risk limits and VaR7Model risk and validation8Operational risk and loss events8Project and real asset finance7Retail and portfolio credit8Stress testing and scenarios7Structured finance and securitisation6
Level
AnyWarm upCoreHard
Source
AnyReported at a firmStandard
Showing 1–10 of 10 · filtered from 100Clear filters
  1. 002A trader with Rs 365 crore of sales asks the bank to renew a Rs 70 crore working capital limit. Work out how much working capital the business actually needs and decide whether the limit is adequate.Corporate credit and ratingsWarm upBank credit riskNBFC credit risk
  2. 015A holding company with no operations services its debt from dividends paid by a cement subsidiary and a power subsidiary, and the power subsidiary's loans block dividends above 4 times leverage. How safe is the holding company's debt?Corporate credit and ratingsHardRating agencyBank credit risk
  3. 025A retailer reports modest net debt, but it has large lease liabilities, a guarantee of a subsidiary's loan and preference shares. Compute adjusted net debt and adjusted leverage, and compare them with the reported figures.Corporate credit and ratingsHardMoody'sHong Kong · 2018
  4. 027A mid-sized manufacturer shows healthy EBITDA but heavy capex and a working capital build. Compute leverage, interest cover and free cash flow, and give a credit view.Corporate credit and ratingsCoreS&P GlobalChicago · 2022
  5. 040A fast-growing software company gets most of its revenue from five clients. Assess its competitive advantage and barriers to entry, and test whether its growth survives the loss of its largest client.Corporate credit and ratingsCoreMorningstarAnonymous interview candidate in · 2023
  6. 050A cement company needs Rs 1,500 crore for a new plant and can fund it with debt, new equity, or its own cash plus debt. Compare leverage and liquidity under each, and say which mix a lender should prefer.Corporate credit and ratingsCoreMoody'sNew York · 2022
  7. 052A freight company's ratios support a solid rating, but its top client is 45% of revenue, promoters have pledged 30% of their shares, one of six directors is independent and it has changed auditors three times in five years. How do you assess it qualitatively, and how far should that cap the rating?Corporate credit and ratingsCoreMoody'sDallas · 2026
  8. 065A pharma company's loan caps net debt at 3.5 times EBITDA. Net debt is Rs 1,200 crore and EBITDA has fallen from Rs 400 crore to Rs 300 crore after a regulator's warning letter on a plant. Compute the breach and the equity cure, and decide as lender between a waiver, a reset and acceleration.Corporate credit and ratingsCoreBank credit risk
  9. 077You are lead analyst meeting the CFO of a consumer products company with high fixed costs, a one-time charge and a large debt maturity next year. What do you ask, and what does a 10% revenue fall do to operating profit?Corporate credit and ratingsCoreMoody'sNew York · 2018
  10. 090A cash-rich technology company announces its first annual dividend and a buyback funded with new debt. Compute net cash and leverage after the first year, and assess what the change in financial policy means for its rating.Corporate credit and ratingsHardS&P GlobalChicago · 2022

Company names and figures are illustrative.