Sample interview questions: How do you assess the impact of changes in airline industry regulations or security measures on a borrower’s creditworthiness?
Sample answer:
Assessing the Impact of Regulatory and Security Changes on Borrower Creditworthiness
1. Analyze the Nature and Scope of the Change:
- Identify the specific changes in airline industry regulations or security measures.
- Determine the extent to which the changes apply to the borrower’s operations.
2. Evaluate the Potential Financial Impact:
- Assess the costs associated with implementing the changes, including compliance, equipment upgrades, and staffing.
- Estimate the potential impact on revenue, considering changes in passenger traffic, pricing, and operating efficiency.
- Determine the potential for government subsidies or other financial support.
3. Consider the Borrower’s Competitive Position:
- Assess the impact on the borrower’s market share and competitive advantage.
- Determine the ability of competitors to adapt to the changes and capture market opportunities.
4. Evaluate the Borrower’s Management Team and Execution Plan:
- Assess the experience and credibility of the management team in managing regulatory and security challenges.
- Review the borrower’s plan for implementing the changes, including timelines, resources, and contingencies.