CRMC Exam tomorrow. Please help - Credit Scoring System

benji469

Hi,


I have my CRMC exam tomorrow and up until today I have felt fine. I have completed 2 of the "part 1" practice CBA
assessments and passed them both. However today I have attempted a part 2 of the exam and have hit a question
that I dont know how to answer. It asks me to rate each company using the "credit rating scoring system".

I have never seen this referred to anywhere in my textbook and I don't know how to answer it. Has anyone else had this problem? Do you know what I need to do here?


Many thanks in advance,

Benji

guinea pig

Hi Benji,
I quote from the Osborne book;
"Credit scoring is a system which gives a numerical value to the results of the performance indicators calculated, and the total of these values then indicates the level of credit risk shown by the financial statements"
Can you go back to the practice CBA, and print the questions, and answers and then work through the question?
Its reasonably straightforward, you are given a list of the scores, for example;
Profits from Operating margin
losses -5
less than 5% 0
5 - 10% 5
10-20% 10
20% + 20

You have to calculate the score for various performance indicators, generally operating profit margin, interest cover, current ratio, & gearing, then add up the score, and see what sort of risk they are per the details supplied.
Good luck,
GP

benji469

Thanks you very much. I was being an idiot and hadn't printed the whole question off. I saw this and panicked.

Thanks again,

Ben

Chelle

Good luck for tomorrow, I'm sure you will be fine with it all.

I passed both parts just before Chrimbo and it wasn't as difficult as I imagined.

benji469

thanks guys. I took the exam today. I passed part 1 and part 2 went pretty well. I relaxed after what you said Chelle

Chelle

Well done :-)