Financial Statement Analysis 2: Credit and Risk Assessment

A course for credit & risk analysts, CCE exam candidates and those striving to earn the new NACM Certified Credit & Risk Analyst (CCRA) certification

About the Program

This intermediate financial analysis program has been designed for credit analysts, risk analysts and managers seeking comprehensive understanding of what's behind the numbers in financial reports. It is designed to improve the credit & finance professional's ability to analyze and interpret financial statements leading to quality credit risk assessment. The program gives equal weight to the process of financial reporting, the analysis and interpretation of financial statements and the steps required to document a quality credit line recommendation.

General Information

General Information

The Certificate Sessions are conducted at the NACM headquarters located in Columbia, Maryland.

Find out how you can complete an NACM Certification Program requirement in one week.

Program Schedule

Financial Statement Analysis 1

About the Program

Financial Statement Analysis (FSA1) is a method of interpreting accounting data in an effort to understand the current financial performance of an entity and project its future health. FSA1 keeps the evaluation process simple, but requires a working knowledge of basic accounting principles. The emphasis of the course is on analyzing financial statements issued by companies using fundamental ratio analysis techniques and analysis of the statement of cash flows. These evaluations can be used to determine the operating efficiency, profitability and financial risk of a firm.

General Information

Program Schedule

Professional Certification Programs

View the schedule of our upcoming in-house courses, online courses or exams.

          

NACM's Six Levels of Certification

Chart Your Path to Earning an NACM Professional Certification

	Credit Business Associate (CBA) The CBA is an academic-based designation which signals mastery of three business credit related disciplines: basic financial accounting, business credit principles and introductory financial statement analysis. There is no minimum work experience requirement and the NACM Career Roadmap is not required for this designation.
	Certified Credit and Risk Analyst (CCRA) The CCRA is an academic-based designation which signals mastery in the analysis and interpretation of financial statements and the ability to make informed credit risk assessments. There is no minimum work experience requirement and the NACM Career Roadmap is not required for this designation.
	Credit Business Fellow (CBF) The CBF is an academic and participation-based designation which illustrates that achievers are knowledgeable about and have contributed to the field of business credit by first having earned the CBA designation, as well as having completed additional course work. The CBF signals competence in business law and credit law. CBF designation applicants must also accumulate Career Roadmap points.
	Certified Credit Executive (CCE) The CCE is NACM's highest designation that endorses its achievers as capable of managing the credit function at an executive level. Candidates must meet minimum professional and educational standards as well as accumulate Career Roadmap points. Candidates must be proficient in the areas of accounting, finance, domestic and international credit concepts, management and law. CCEs are required to recertify every three years, further signifying their commitment to continuing education, self-improvement and the advancement of the business credit profession.
	Certified International Credit Professional (CICP) FCIB's Certified International Credit Professional (CICP) designation is an academic-based designation earned by successfully completing FCIB's International Credit & Risk Management (ICRM) online course. The instructor-led, in-depth 13-week course is delivered in 12 modules and is designed to educate entry-level professionals as well as senior-level executives about the intricacies of global credit and risk management. This instructor-led international course has attracted participants from more than 25 different countries, with diverse backgrounds and professional experiences. Participants spend an average of 5-7 hours per week on the course. Participation in discussion board postings, "group share" assignments are a required aspect within each unique module.
	International Certified Credit Executive (ICCE) The International Certified Credit Executive (ICCE) designation has been created for international credit and risk analysis professionals who are ready to make an impact on the world stage by excelling beyond their CICP designation. The CICP designation is a prerequisite for those candidates who place a high value on continuing education as a means to securing the information and knowledge necessary to maintain their executive status. ICCEs not only continue to engage in ongoing education, but also participate in their associations by serving on committees, work groups or completing surveys, mentoring through engagement on the FCIB Discussion Board or LinkedIn page or taking a leadership role by serving as a panelist or speaker.

View Course Options to Work Towards Your Designation

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Specialty Certificate and Advanced Courses

Commercial Collections Specialist

This Specialty Certificate allows students to examine the concept of the cost of credit. This certificate teaches the four basic costs of credit that businesses should consider when developing a credit policy which will aid in understanding why a customer doesn’t pay, and thus enable a business to prevent some of these situations. This certificate also shows credit professionals how documenting the credit relationship is a vital part of the preparat ion for lending and how to get set up properly so that the right policies and procedures are in place to help ensure a good credit relationship with the customer. Finally, this certificate explores how to evaluate whether a company’s credit policies comply with the law. Federal and state regulations govern the extension and enforcement of credit. It will also cover the basics of how to make effective collection calls. The material in this certificate course is designed for the beginning credit professional, with 0-3 years of credit experience. Also please note, regulations vary from state to state; this presentation covers general concepts about state regulations.

Commercial Construction Credit Specialist

This Specialty Certificate is designed especially for commercial credit executives in the building and construction arena. The course will cover construction terminology and the importance of contract terms and forms that will reduce costs and motivate a debtor to pay. A brief guide to the Uniform Commercial Code will be presented, along with descriptions and explanations of Article 2: Sales; Article 6: Bulk Sales and Article 9: Secured Transactions. Learn the terms the Uniform Commercial Code adds to your contract automatically unless you “otherwise agree.” The mechanic’s lien filing process will be explained, including when and why to file a preliminary notice. Other topics include payment bonds, the difference between public and private entities and dispute resolution options.

Commercial Bankruptcy Credit Specialist

This Specialty Certificate provides a broad overview of bankruptcy to familiarize the credit professional with the different chapters of bankruptcy and the parties involved. It will discuss the major bankruptcy chapters in depth and describe how a creditor can deal with and work through the different chapters of bankruptcy. Credit professionals will also learn what rights he or she has as a creditor. The credit professional may recognize the term reclamation from state law concepts. Although reclamation is not specifically a bankruptcy concept, it is implemented in bankruptcy. This Specialty Certificate will also provide “how-to” basics on dealing with preference claims, and customers filing bankruptcy.

Advanced Credit Policy

This is an advanced course in the analysis and formulation of a credit policy, including policies regarding credit investigation, terms of sale, credit-granting, and credit limits. It is intended for experienced credit professionals (typically Directors of Credit or similar positions) who must make and enforce credit policy. This is not an introductory course.

Why Should You Earn Your Certification?

When you apply to participate in the Professional Certification Program, you are on your way to demonstrating that you are among the best. You’ll join a select group of individuals who have made the commitment to excellence in credit management, career advancement and an ongoing pursuit of knowledge. Throughout the process, you will be recognized for your achievements.

The certification program, sponsored by the National Association of Credit Management, has helped define and establish professional standards in this demanding and rapidly changing field, and fosters recognition of those individuals who possess special expertise.

View Certification Application Forms

A Recognized Path to Success

Among credit management professionals, the professional certification program is respected and appreciated. Not only is participation in the program a mark of distinction throughout the profession, but it offers you a wide range of important benefits:

• Expanded Knowledge: By reading, studying and preparing for the exams, you’ll gain a thorough, up-to-date understanding of every aspect of credit management, including a look at future trends and strategies essential to your success.
• Career Opportunities: Certification tells employers that you are motivated, accomplished and current in your knowledge of credit management skills. It indicates that you are actively working to maintain high standards in the field.
• Heightened Professional Recognition: NACM’s professional designations attest to experience, knowledge, ability, accomplishment, leadership and contributions to the credit and financial fields. Designations raise the level of respect among colleagues in business credit management and between professionals in the financial community. Proudly display your designation with your name on letterhead, business cards and all forms of address.
• Standards of Excellence: With constant changes in credit and with banking and financial services redefining the role of the credit executive, the certification program is clearly a valuable way to master professional education requirements and achieve professional excellence.

More Information

Access Online Course Options
View NACM's Online Course Options

Credit Learning Center
Visit NACM's Credit Learning Center

PDF Version
Click here to download NACM's Professional Certification Program brochure.

Career Roadmap
View the Career Roadmap

As an additional study tool for the CBA and CBF designation exams, NACM offers practice exams. The practice exams use sample questions on relevant topics to simulate the level and types of questions found on the actual exam. Please note that the practice exams are intended to provide a sampling of the CBA and CBF exams’ questions and scope. The questions on the practice exam are not necessarily the same questions that will appear on the actual exams. For more detail on the certification exams, please refer to the Exam Study Guides.

The following list of forms may be opened in Adobe Acrobat Reader or Microsoft Word.

Forms in a Portable Document File (PDF) format may be opened, reviewed and printed at your convenience.

Forms in a Microsoft Word format may be downloaded and completed by using the tab key to move from one space to the next.

PDF Version
Click here to download NACM's Professional Certification Program brochure containing all of the forms below.

For those candidates studying for the CBA, CBF or CCE certification exams or for those wishing to glean additional information about the certification exams, NACM provides a study guide/outline of relevant texts and topics. NACM also offers CBA, CBF and CCE review sessions through the Credit Learning Center or CBA and CBF Practice Exams.

CBA Study Guide

CBF Study Guide

CCE Study Guide

NACM sponsors four professional designations that enable credit professionals to demonstrate their commitment to excellence in their field. NACM is the only body which offers these nationally recognized, professional designations.

Professional designations: CCRA ·CBA · CBF · CCE

Step 1: Register With NACM’s Education Department

An official registration form must be submitted before applying for the CCRA, CBA, or CCE designations. A non-refundable fee of $175 ($275 for non-members), which covers the establishment of your lifetime personal file, must accompany your form. Your registration opens your own personal file where you may begin sending information about the continuing education events which you attend throughout your career.

If you are enrolled in a CAP or ACAP program, you should register as soon as possible. Then, as you receive your end of course grades, you can add them to your personal file by mailing them to the National Education Department. Once your grades are on file with NACM-National, there's no need to resend the documentation when you apply for a professional designation.

Once your registration is received, you will be sent a confirmation notice. You will receive a recommendation as to which designation is right for you, after your initial personal information has been evaluated.

What kind of information should be sent in with your registration form:

A copy of your resume or a summary of your professional experience. As your professional responsibilities change, you should send updated copies of your resume to the National Education Department for your file.

Certificates, continuing education earnings (CEU) records, end of course certificates, or evidence of attending any educational seminars. Send as much information as possible about any continuing professional education you have completed. This information will be kept in your personal file. Then, as you attend educational seminars and meetings, continue to send information to NACM-National to be added to your file.

The sponsor of the different educational conferences and seminars you attend is responsible for keeping your records on file. For example, if you attend a local NACM Affiliated Association sponsored event, that association is responsible for maintaining your continuing education earnings records. Rather than having your earnings records maintained by several different program sponsors, you can consolidate the information by continually adding it to your personal file.

Official transcripts from undergraduate or graduate colleges or universities. Have the college send your transcripts directly to the NACM National Education Department for evaluation. The transcripts must be received directly from your college—photocopies are not acceptable. Transcripts must be sent only one time; if your transcripts are already on file with the National Education Department, you need not have them sent again unless you have taken additional courses.

Step 2: Complete the Appropriate Designation Application Form

The CBA, CBF and CCE designations have their own application forms. To apply for the CBA, CBF or CCE designation and the examination, you must complete a short application form and submit it with the corresponding, non-refundable fee. Each designation application fee covers a formal evaluation of your file, examination costs and, upon successful completion of a designation exam, a certificate with a plaque attesting to your achievement. The application fee may not be divided or reduced due to failing the exam, withdrawing from the program, or refusing the certificate. The CCRA designation does not require a separate application form. The registration form for the Financial Statement Analysis, Interpretation and Credit Risk Assessment course serves as the CCRA designation application.

Designation Application Fees

Step 3: Complete an NACM Career Roadmap

Along with the CBF or CCE designation application, you will need to submit the NACM Career Roadmap. This form enables you to assess your professional accomplishments. There are more than 500 points available on the NACM Career Roadmap. (The CBA and CCRA designations do not require the NACM Career Roadmap.)

A total of 75 Roadmap points (plus course work) is needed to apply for the CBF designation and a total of 125 points is needed to qualify for the CCE designation. Points are awarded for both formal and continuing education, work experience, participation in your local and national NACMs, as well as special activities with which you may be involved.

You should send your completed Career Roadmap to the NACM National Education Department for evaluation with your application form and fee. Your application and paperwork will be reviewed and verified, after which you will be notified of your status. Completed paperwork is due 8 weeks prior to the scheduled exam date to ensure time for a thorough evaluation.

Remember that by registering early and sending in copies of your resume, grade transcripts and continuing education earnings records, you will speed up the processing time.

You should save a copy of each Career Roadmap you submit. Since the Roadmap is intended to be added to throughout your career, you will continue to add points and information to your NACM Career Roadmap as your career progresses.

More Information

Click here to download a copy of the Professional Certification Program brochure.

CCE

The Certified Credit Executive^® (CCE^®) is NACM's executive level designation which endorses its achievers as capable of managing the credit function at an executive level. Candidates must pass a rigorous, four-hour exam which tests application skills in the areas of accounting, finance, domestic and international credit concepts, management and law.

View Course Options to Work Towards your CCE.

Ways to Qualify for the CCE Designation Exam:

Plan A: Hold the CBA and CBF Designations and 125 Career Roadmap Points
Plan A is for individuals new to credit or those looking to acquire the concrete skills and knowledge needed to be successful in the field of credit. This plan is designed for candidates who show the determination to pursue continuing education and higher career goals at a faster pace. Plan A applicants must have successfully earned both the CBA and CBF designations and must submit a Career Roadmap showing a total of 125 documented points. (Because Plan A applicants have already earned the CBF designation which required 75 Roadmap points, 50 additional points will total the 125 required.) There is no minimum work experience requirement under Plan A. An updated copy of your resume must accompany your CCE Application.

Plan B: 10 Years Experience, a Four-year Degree and 125 Career Roadmap Points
Plan B requires that applicants have at least 10 years of full-time experience in the field of business credit or financial management, have a four-year degree and can show evidence of 125 Career Roadmap Points. NACM Career Roadmap points are awarded for education (both formal and continuing), work experience and work-related activities, and local, regional and national NACM participation. The CCE Application form may be submitted along with your resume for evaluation.

Plan C: 15 Years Experience, 57 Years of Age or Older, and 125 Career Roadmap Points
Plan C is an option for candidates who may not have earned a degree from a four-year college or university, but have at least 15 years of experience in credit or financial management. After submitting a CCE application form and a completed Career Roadmap documenting 125 Roadmap Points, candidates will be notified in writing of their eligibility to take the CCE exam.

How to Apply for the CCE Designation

Submit the following to the NACM Education Department:

1.    The Education Department Registration form, with  applicable fee ($175 for NACM members, $350 for non-NACM members), if not submitted previously.

2.    The CCE Designation Application form, with applicable fee ($440 for NACM members, $880 for non-NACM members). You should submit your course grade transcripts with this application.

3.    A copy of your resume.

4.    Official college transcripts. Transcripts must be received directly from your college.

Once you've qualified, you may take the CCE Designation Exam. The four-hour exam is offered three times a year nationwide at local NACM Affiliated Association offices and once a year at NACM's Credit Congress. Exam and paperwork deadline dates may be found here. NACM provides a Study Guide/Outline of relevant texts and topics. NACM also offers CCE review sessions through the Credit Learning Center to assist you in preparing for the CCE exam.  Your local NACM affiliate may also offer CCE review sessions.

GSCFM® Students

Upon successfully completing the Graduate School of Credit and Financial Management® program, students may take the CCE designation exam. The standard application requirements are waived, though these students must take and pass the CCE exam to earn the designation.

CCP HOLDERS (formerly FCI)

Anyone holding the Certified Credit Professional (formerly FCI) certification, Canada's credit designation, who would like to become a CCE should register and apply for the CCE designation. Roadmap points and work experience qualifications will be waived for all CCP's in light of the intensive course regime and testing process required of them in Canada. Candidates need not complete the Career Roadmap, but must submit a copy of their CCP certificate, along with official college transcripts and a current resume. CCP's who register and apply for the CCE examination must also take and pass the same exam as all domestic candidates.

CCE Recertification

CCEs must apply for recertification every three years. During each three-year period, a total of six recertification points must be earned. Three of the six points must be continuing education points and three points must be participation points.

Education points may be earned by:

• Attending continuing education programs at Conferences, Seminars, Meetings or Roundtables
• Attending the annual NACM-National Credit Congress
• Serving as a speaker, presenter or panelist at a local, regional or national educational event on a business credit or financial management topic
• Teaching courses related to business credit or financial management
• Completing the Advanced Credit Policy course through NACM's Credit Learning Center
• Completing self-study courses from our Bookstore, including
  • Fair, Square and Legal
  • How to Manage Conflict in the Organization
  • Leadership Skills for Managers
  • Performance Management
  • Planning and Leading Productive Meetings

Participation points may be earned by:

• Participating in NACM-sponsored educational Conferences, Seminars, Meetings or Roundtables
• Serving on the board of directors or as a chair or committee member of a local NACM Affiliated Association, an NACM Industry Credit Group or at the National level of NACM, CFDD or FCIB.
• Contributing to a Business Credit magazine article
• Participating in the Credit Manager's Index (CMI)
• Participating in NACM-National teleconferences or webinars (please note that you must be the registered participant to receive credit)
• Your company's contribution of its Accounts Receivable Data to an NACM Affiliate credit reporting database.

These are only a few ways which you may accumulate the required recertification points. Please see the CCE recertification brochure for more details

CCE Recertification Form (Download PDF file)

You may find a listing of your NACM education history by visiting www.nacm.org and logging in through the link in the upper right corner. Once logged in, click on Check My Account and then Participation to view your CEU earnings, NACM meeting history and CMI survey participation.

CCE Recertification Fees:

Recertification reports are due no later than December 31 of the year of certification expiration. For each three-year period, there is a renewal fee of $200 for members and $350 for nonmembers. Renewal fees are reduced to $175 for members if the renewal application is received by October 31 of the year of certification expiration.

Lifetime CCE Certification

CCEs must apply for recertification every three years until reaching age 60 (or until age 55 and have officially retired from the credit and financial management field.) When you reach age 60 (or 55, having formally retired), you should notify the National Education Department so that you may be granted lifetime certification.

CBF

The Credit Business Fellow^SM (CBF^SM) Designation is an academic and participation-based designation which illustrates that achievers are knowledgeable about and have contributed to the field of business credit by first having earned the CBA designation as well as having completed additional course work. The CBF signals competence in business and credit law. In addition to completing course work, CBF designation applicants must show evidence of 75 NACM Career Roadmap points. An updated copy of your resume should accompany your CBF Application form and completed Career Roadmap. The NACM Education Department will notify you in writing as to your eligibility to take the CBF exam.

The two courses needed to qualify for this designation are:

CBF Process At-A-Glance

1. Hold the CBA Designation
2. Complete the required course work
3. Complete an NACM Career Roadmap, showing evidence of 75 points
4. Complete the CBF Designation Application Form

Once you’ve qualified, you may take the CBF Designation Exam. The three-hour exam is offered three times a year nationwide at local NACM Affiliated Association offices and once a year at NACM's Credit Congress. Click here to access the CBF Exam Study Guide.

NACM also offers CBF review sessions through the Credit Learning Center and a CBF Practice Exam to assist you in preparing for the CBF exam.

1. Business Law
2. Credit Law

View Course Options to Work Towards your CBF

How to Complete the Required Courses

The Business Law course should be completed before the Credit Law course.

The required courses may be completed:

• by attending college courses, or
• NACM-National's online Business Law and Credit Law course through the NACM Credit Learning Center or
• through the Advanced Credit Administration Program (ACAP)sponsored by local NACM Affiliated Associations, or
• through NACM online self-study.

A minimum passing grade of “C” or higher is necessary in each course to fulfill a requirement. It is recommended that information about the course be sent to the NACM Education Department for course equivalency evaluation prior to enrollment. If you have already completed this course work, you must submit either a course outline or description to ensure that course equivalency can be evaluated.

CBA

The Credit Business Associate^SM (CBA^SM) is an academic-based designation which signals mastery of three business-credit related disciplines:

1. Basic Financial Accounting
2. Financial Statement Analysis 1
3. Business Credit Principles

There is no minimum work experience requirement for this designation level and the course work needed to qualify for this designation can be obtained through colleges, local NACM Affiliated Association programs, self-study or nationally sponsored programs.

View Course Options to Work Towards Your CBA

How to Apply for the CBA Designation

Submit the following to the NACM Education Department:

1. The Education Department Registration form, with applicable fee ($175 for NACM members, $350 for non-NACM members).
2. The CBA Designation Application form, with applicable fee ($270 for NACM members, $540 for non-NACM members). You should submit your course grade transcripts with this application.
3. A copy of your resume.
4. Official college transcripts. Transcripts must be received directly from your college.

Once you've qualified, you may take the CBA Designation Exam. The three-hour exam is offered three times a year nationwide at local NACM Affiliated Association offices and once a year at NACM's Credit Congress. NACM provides a Study Guide/Outline of relevant texts and topics. NACM also offers CBA review sessions through the Credit Learning Center.

The Credit Business Associate^SM (CBA^SM) is an academic-based designation which signals mastery of three business-credit related disciplines:

1. Basic Financial Accounting
2. Financial Statement Analysis 1
3. Business Credit Principles

There is no minimum work experience requirement for this designation level and the course work needed to qualify for this designation can be obtained through colleges, local NACM Affiliated Association programs, self-study or nationally sponsored programs.

View Course Options to Work Towards Your CBA

How to Complete the Required Courses:

Basic Financial Accounting

The basic financial accounting course should be completed before the financial statement analysis course. The Basic Financial Accounting course requirement can be fulfilled by successfully completing either:

1. One full semester or two quarters of basic financial accounting at a college or
2. NACM-National's online accounting course. This course is an appropriate method of study for those with some accounting experience or a basic working knowledge of accounting or
3. Your local NACM Affiliated Association sponsored course.

Financial Statement Analysis 1

The Financial Statement Analysis 1 course requirement can be fulfilled by successfully completing either:

1. One full semester or two quarters of basic financial statement analysis at a college
   or
2. NACM-National's online Financial Statement Analysis 1 course through the NACM Credit Learning Center, or
3. The certification course, when offered at NACM's National Headquarters or
4. Your local NACM Affiliated Association sponsored course.

Business Credit Principles

The Business Credit Principles course requirement can be completed three different ways:

1. NACM-National's online Business Credit Principles course through the NACM Credit Learning Center or
2. The certification course, when offered at NACM's National Headquarters or during NACM's annual Credit Congress or
3. Your local NACM Affiliated Association sponsored course.

The Credit Administration Program (CAP)

Many NACM Affiliated Associations sponsor the Credit Administration Program (CAP), which is a series of courses designed to prepare candidates for the CBA exam.

Each CAP course comprises of at least 30 hours of class time. Your local CAP sponsor will furnish you with end-of-course grades, grade transcripts or certificates of completion. Click here to learn more about the Credit Administration Program.

Credit Learning Center and a CBA Practice Exam.