Sample interview questions: Can you explain how you would handle a situation where a borrower faces supply chain disruptions?
Sample answer:
Assess the Impact:
- Quantify the financial implications of the disruptions on the borrower’s cash flow, revenue, and profitability.
- Evaluate the severity and duration of the disruptions, considering both upstream (suppliers) and downstream (customers) effects.
Communicate with the Borrower:
- Establish open and transparent communication channels to gather information and understand their perspective.
- Discuss potential mitigation strategies and contingency plans that can be implemented.
Review Existing Credit Agreement:
- Examine the credit agreement to identify any relevant clauses that may trigger potential covenant breaches or adjustments to payment terms.
- Consider if any amendments or waivers are necessary to provide flexibility or support to the borrower.
Monitor Financial Performance:
- Monitor key financial metrics to track the borrower’s progress and assess the impact of the disruptions on their financial health.
- Identify any early warning signs of financial distress that may require additional support.
Explore Mitigation Strategies:
- Collaborate with the borrower to identify and evaluate potential solution… Read full answer
Source: https://hireabo.com/job/1_2_31/Credit%20Risk%20Manager