The Ten Commandments of Insolvency. Why do companies fail?

The Ten Commandments of Insolvency. Why do companies fail?

– Applied workshop for banks and companies –

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Workshop context: the insolvency procedure = a “national sport” in Romania

The business environment in Romania improved to perfection on the process of creative destruction: ceasing the activity of a company and transferring its business to another firm has become a national sport. The figures for 2005 – 2015 confirm it very objectively: approximately 200,000 companies opened insolvency proceedings, and over one million companies ceased their activity (also counting other forms of ceasing a business activity: suspension, dissolution, deregistration). Considering that at the end of 2015 approximately 450,000 companies were active (recording revenues), the very large number of insolvencies is worrisome. In a capitalist market economy a quarter of a century old, the Romanian business environment seems to be continuously put to a test and experiencing a time lag increasingly high against developed economies. Featuring low competitiveness, a wearing down of the middle class, an accentuated polarization phenomenon, and a modest entrepreneurial spirit, the Romanian business environment seems to be in its embryonic stage of development, and incapable of passing to the next level.

What might we learn from the mistakes of insolvent companies?

Given the background described above, the business environment has only one option: not to repeat the mistakes of the companies that have already opened insolvency proceedings. To transform their failure into a learning curve. The reason? Well, it’s simple: in today’s context, being misinformed is a luxury one cannot afford! And studying the success and failures of the business environment is the best and most efficient way of learning. In the last ten years we analyzed one by one the financial standings of all the companies that opened insolvency proceedings during that precise period of time. After this process, we have identified ten mistakes that all insolvent companies have in common.

OBJECTIVE

 The objective of this workshop is to present the ten most common mistakes that insolvent companies make!

TARGET GROUP

The staff hired in the credit risk control and management departments of banks and other financial institutions, analysts and financial consultants who want to go deeper into advanced techniques of financial analysis, as well as financial analysts in private companies of any size. This course is also useful to economists / financial analysts who work in various fields and who want to expand their practical notions of corporate finance.

Conditions of access: average knowledge of financial analysis, and at least one year of relevant professional experience.

CONTENT

The content of this workshop is designed to introduce the ten most common mistakes of insolvent companies and how to apply them in relevant case studies (insolvent companies versus success stories):

  • Aligning the horizon of assets and liabilities
  • Structure of the profit and loss account, and turnover elasticity
  • Synchronizing the operational cycle
  • Profit quality and stress scenarios
  • Cash flow structure
  • Liquidity sustainability
  • Dividend policy: how much? where from? Impact?
  • The golden rule of finance: turnover inequality
  • The management of investment projects
  • Group structure and sector context

LECTURER

Iancu Guda, CFA, EMBA – General Director, Coface Credit Management Services SRL

As General Director of Coface Credit Management Services, Iancu Guda is responsible for developing lines of services. Iancu has over 10 years of experience in credit risk management, having held different positions in areas such as securitization of receivables, evaluation of loan portfolios, product development, etc. Starting 2013, he is an associated lecturer at the Romanian Banking Institute, where he teaches Advanced Financial Analysis, as well as Corporate Finance within the CEFA program (Certified European Financial Analyst), and he is a certified trainer. After graduating from the Academy of Economic Studies, majoring in Insurance, Banks and Stock Exchange, Iancu finalized the DOFIN program – European Excellence Center in 2010, and all three levels of certification for CFA in 2016. He also graduated from the Excecutive MBA Program, Sheffield University, in 2016. Starting March 2012, Iancu is an active member of AAFBR (the Association of Financial and Banking Analysts in Romania); he has been the Vicepresident of AAFBR from 2014 to 2016, and, subsequently, he has become the President of the Board of AAFBR for the 2016-2018 term.

PERIOD

March 25 , 2017

RBI will hold the course on its premises, providing specialised lecturers, course materials and catering services during the training day.

At the end of the course, participants will be given a certificate, issued by RBI (under the aegis of the founding members: NBR and RBA), with 7 CPD credits.

LANGUAGE: Romanian/English

CONTACT:

Maria Plăişanu
Training Manager
Telephone: 021 327 48 93
Mobile: 0748.886.846
e-mail: maria.plaisanu@ibr-rbi.ro

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