Performance Evaluation Josh
Write a 1-2 page executive summary, along with an appendix of supporting information, in which you analyze an organization’s financial performance as well as their level of risk for lending and make and present a recommendation to help leadership make a loan decision.
Introduction
This portfolio work project will help you complete a thorough review of an organization’s financial performance as well as their level of risk for lending. Your recommendation will help leadership create a loan portfolio, and your executive summary will clearly and concisely communicate your review to others in the organization.
Scenario
You work for an organization that provides loans to businesses. You are working with a client who is requesting a loan that will require a review of financial and related performance documents. You have been asked to review the documents and summarize your findings in a loan recommendation for your management team.
You may apply this scenario to either Option 1 or Option 2, described in Requirements below.
Your Role
You are a loan manager for a lending organization, and your responsibilities include reviewing loan requests and providing recommendations in regard to whether the loan requests should be funded.
Requirements
Option 1:
Your client works for Ace Company. Assume Ace Company requested a $3 million 10-year loan to purchase production equipment and develop accompanying software. Use the Ace Company Data document for this option.
Option 2:
Use a firm or scenario of your choosing.
Before choosing a company, read the assessment thoroughly to ensure:
- The company fits the assessment requirements.
- You have access to the financial statements and related performance documents needed to assess risk and make a loan recommendation. You will need information for this year and last year.
- You can distribute the financial statements and related performance documents without disclosing confidential company information.
Loan Recommendation
To arrive at your recommendation, analyze the financial performance of the requesting company and present it to your organization’s upper-management team. The management team will take your recommendation into consideration as they finalize loan requests.