Banks want risk info

Businesses can help themselves gain finance by properly assessing their risks.

Minter Ellison head of corporate commercial and banking John Paulsen said banks had needed detailed credit histories of clients before they could loan them money.

Mr Paulsen said the sort of risks a bank would want to analyse for a cash flow-reliant business included competitive, key personnel, Y2K, GST and legal and security risks.

“Key personnel risk addresses things such as measures to deal with the loss of a key staff member,” he said.

For businesses in the construction area risks include management, sales, environmental, key personnel and security.

“One of the big risks in this area, though, is construction risk,” Mr Paulsen said.

“That risk is based on the contractor’s record. Can the company have it built on time without cost overruns?

“When a company is going for finance it would be advised to have a document covering these risks.

“The more they analyse the risks of their industry the better.”

Add your comment

BNIQ sponsored byECU School of Business and Law


6th-Australian Institute of Management WA20,000
7th-Murdoch University16,584
8th-South Regional TAFE10,549
9th-Central Regional TAFE10,000
10th-The University of Notre Dame Australia6,708
47 tertiary education & training providers ranked by total number of students in WA

Number of Employees

BNiQ Disclaimer