Credit Risk Management - igkservice.ru · Specialist for credit risk management. 1991 . First IGK...

Experts for Credit Risk Management in Russia, Baltic States and CIS

2011 IGK Group ©

Credit information Trade Credit Insurance Debt collection

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1991 – 2011

IGK – Specialist for credit risk management

1991 First IGK company was registered in Germany

1992 First companies of IGK Group were registered in

Russia and Baltic States

1993 IGK Holding was registered in Germany.

SCRL (Coface) and Intercredit Holding became members of

IGK Holding.

1994 Expansion in Lithuania, Latvia, Estonia, Ukraine, Russia 1998

2007 Separation from Coface

2007 Cooperation with leading Trade Credit Insurance 2011 companies: Euler Hermes, Atradius, Ducroire, Sinosure, Ksure, Mapfre, Ingosstrakh-ONDD and other.

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Credit reports

Monitoring

Debt collection

Trade Credit Insurance

Factoring

Consulting

Financing

IGK has 20 years experience in credit risk management services:

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IGK AG

Bonn, Germany

IGK Service Latvia

IGK Service Lithuania

IGK Service Estonia

IGK Credit Management

Moscow


Nizhnij Novgorod


Samara

IGK Services Ukraine

IGK Services Rus

Tambov Production office

IGK Insurance Broker

Russia

Balt Risk Baltics

Risk Ukraine

IGK Broker Baltic

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Chelyabinsk


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Red –IGK office Blue/Green –IGK network

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Supplier Client

Payment obligations ???

Payment terms = trade credits

Debt - management


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Assets Equity & Liabilities

Fixed assets

- Tangible

- Intangebile

%

%

Current assets

- Stock - Trade receivables

%

%

- Other receivables %

Capital & Reserves

- Financial %

- Cash %

- Share capital

- Additional paid in capital

%

%

- Fair value and other reserves %

- Retained earning carried forward %

Liabilities

- Bank loans - Payables to suppliers

%

%

- Advance from trade debtors %

- Other current liabilities %

Structure of balance sheet from your company


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Analysis of clients – information gathering

Administrative Data

OGRN-INN-KPP

Legal address

Real address

Share capital

Articles of incorporation

Power of attorney

Bank details

Financial Data

Annual reports from last 3 years

Key ratios

Plan for the next years

Management

Employees –

•Top management •Qualification •Fluctuation Products

Technology

Sales strategy

Finance

Vendors

Sector

Economy

Payment experience

Own payment experience

Experiences from 3rd parties (business partners, information agencies, trade credit insurer)

Action for payments

Bankruptcy procedures

IGK reports are approved by all

main European Trade Credit

Insurers for risk evaluation


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Analysis of clients – information sources


• Register • Statistik • Court

• Information agencies • Rating Agencies • Trade Credit Insurer

• Financials • Management • Transparency • Trust

• www • Mass media • Journals • Scientific publications

Public sources

Company

Official sources

Professional information

gatherer

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Russian challenges


• Limited transparency of Russian management

• Tax optimized financial reports

• Limited profit

• Limited turnover

• Limited equity

• Limited credit history

• Group structures – without official connections

• Using from off-shore entities

• Gry schemes

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Analysis of clients

Evaluation

Mathematical systems

•Trade Credit Insurer •IGK

Scoring systems

•Information agencies

Expert opinion

•Risk Committee of company


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Analysis of clients

Evaluation

IGK principles Range Turnover in k €

R1 1 - 50

R2 51 - 150

R3 151 - 500

R4 501 - 1.500

R5 1.501 - 5.000

R6 5.001 - 20.000

R7 20.001 - 70.000

R8 70.001 - 200.000

R9 200.001 - 500.000

R10 500.001 -

Rating Probability of default within next 12 month

A++ Lowest risk. Excellent business. High credit term 0,09%

A+ Lower risk. Old established, stable company 0,47%

A Low risk. Secured business on uptrend 1,07%

B++ Risk below normal. Reliable business 2,18%

B+ Normal risk. Business on uptrend 4,46%

B Normal risk 13,36%

C Risk above normal. Short term only 31,83%

C- High risk. Full security only 61,70%

D Higher risk. No credit term to be granted 84,15%

F Highest risk. Company on the verge of bankruptcy

92,03%


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Securities

Physical

Mortgage

Pledge

Deposit

…

Personal

Guarantee from bank

Surety legal entity

Surety from private person

Letter of Credit

Insurance


Factoring

Non recourse

Recourse


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Insured

Portfolio of debts Risk transfer to Trade Credit Insurer

Client 1

Client 2

Client 3

Client n

Credit limit

Receivables

ROSNO

Alfa Strakho vanjie

Coface

Ingos strakh- ONDD


Principals of Trade Credit Insurance

Euler Hermes

Atradius

Coface

ONDD

Insured

Insured


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Principals of Trade Credit Insurance


RUR.

days

Maximum liability

Payment term Automatic cancellation Waiting period Indemnification Overdue notification

Datum line

Credit line

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Factoring Client 1

Factoring Company Credit Insurer Factoring Client 2

Factoring Client n

Customer 1

Customer 2

Customer n

Customer 1

Customer 2

Customer n

Customer 1

Customer 2

Customer 3

Alfa Strakhovanjie

Coface

Ingostrakh-ONDD

ROSNO / Euler Hermes

Non–recourse + recourse factoring

Factoring + Trade Credit Insurance

Customer n

Credit Insurer


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SWOT Analysis - Trade Credit Insurance


Strengths:

Risk mitigation

Financial stability

Risk can be calculated

Collateral – worthy and tax optimized

Strengthen debt management in company

Weaknesses:

Bureaucratic requirements

Risk policy of insurer not stable

Cover depends not only from creditworthiness of debtor

Opportunities:

Conquer new markets with giving payment terms

Strengthen own position in front of clients in case of disputes concerning payment delays

Increase transparency and commercial goodness of market player

Threats:

Total following the risk policy of insurer by management


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Securities


Available Effort to create

Expenses Worth

Mortgage

Pledge

Bank guarantee

Surety

Letter of Credit


Factoring

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Analysis of clients

Rating\Limit <10 <25 <50 <75 <100 <250 <500 <1000 <2500 <5000 >5000

A++

A+

A

B++

B+

B

C

C-

D

F

Risk category 1 Risk category 2 Risk category 3 Risk category 4


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Debt collection

Legal

Information


Securities

Services of IGK group

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Why work with IGK? • 20 years experience in credit risk

management in CIS and Baltics

• Whole spectrum of services for professional credit risk management

• Information • Trade credit insurance • Debt collection • Related services (IT,

seminare,…)

• Economic power by using the complexity of all market participants - suppliers, trade credit insurer, banks, factoring companies together with information agency and insurance broker from IGK. This helps to strengthen the position of supplier who works with IGK group.

Insured

Buyer 1

Buyer 2

Buyer 3

Buyer 4 ROSNO /

Euler Hermes

Alfa Strakhovanjie

Coface

Ingosstrakh- ONDD


Bank n

Client 1

Client n

Factor n

Insured

Insured


Buyer 5

Buyer 6

Buyer 7

Buyer n

Non insured

Non insured

Non insured

Benefits of cooperation with IGK-group


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OOO IGK Insurance Broker 1st licensed broker in Russia specialized on Trade Credit Insurance

Bolshaja Semenovskaja, d.40, bldg.. 1, office 609,

Business Center “Agat”

107023 Moscow,

Russian Federation

Andreas Steinborn Deputy General Director

mobile: +7 495 22 63 930

email: [email protected]

Nataljia Pavlova Key account manager commercial


Ekaterina Bolabko Key account manager risk


tel.: +7 495 287 47 60

web: www.igk-group.com

Contact details:

mailto:[email protected]









http://www.igk-group.com/



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Status Director of IGK AG, Bonn since September 2010

Deputy General Director of OOO IGK Insurance Broker

Member of the board of the Association of Professional

Insurance Broker in Russian Federation

Consultancy Credit Risk Management in Russia

information, trade credit insurance, debt collection, factoring

Career Study Economy: Hochschule für Ökonomie, 1984–1990;

Hermes Kreditversicherungs-AG, since 01.01.1991;

Sales representative - until Aug. 2005;

Head of Representative Office Euler Hermes KV AG – from

2005 until 2010;

CEO OOO Euler Hermes Credit Management, Moscow – 2009 –

2010

Languages German, Russian, English

Bolshaja Semenovskaja,

d.40, bldg. 1, office 609,

Business Center "Agat"

107023 Moscow, Russia

Tel.: +7 495 287 47 60

Mobile: +7 495 22 63 930

E-Mail: [email protected]

web: www.igk-group.com

[email protected]

Andreas Steinborn







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One stop shop for credit risk management

IGK Group ®

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Credit information Trade Credit Insurance Debt collection


Credit Risk Management - igkservice.ru · Specialist for credit risk management. 1991 . First IGK...

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