Serious Game assesses business risk and loan structuring
Via: Caspian Learning and Omega Performance
Omega
Performance partnered with Caspian Learning to develop and bring to the market SimuStar
-- an advanced credit simulation aiming at changing banking industry attitudes
towards risk, lending and return (Please find also Serious Games Improving Training and Performance Metrics)
SimuStar helps lenders hone judgment and decision-making skills by replicating
real-life experience in collecting and interpreting data, which is the only way
to fully test lender's skills.
In the SimuStar
Series, as in real life, players work with a team of lenders. These virtual
colleagues help guide players, through meetings and conversations, as they
collect information on a lending opportunity, analyze key financial data and
make decisions on structuring a loan.
Players
also have the chance to visit the potential clients and meet with their team,
ask questions, and tour their facilities as they gather information to make their
decisions.
SimuStar offers the chance to practice critical skills using actual case studies
in an environment similar to players’ actual workplace. It is designed to
recreate job situations realistically, where players judgment is tested, but
without the risk of a real lending process.
To help
populate this environment with enough variety so that each challenge presents
something different, SimuStar uses a vast collection of real life case
studies to provide a library of complex lending scenarios specifically designed
to challenge the learner whilst delivering the widest range of useful
experiences possible.
Examples of SimuStar Cases
Kings Confections
Industry: Manufacturing
King’s
Confections, a manufacturer of chocolates and confections, is a prospective
customer that the lender has contacted to request a meeting. The Company
currently has a line of credit and various term loans which the customer may be
interested in moving to the lender’s financial institution.
The lender
will be required to review the historical and projected financial information
for King's, meet with the management team and tour the King's plant to assess
the risk in lending to the company. If the lender determines that refinancing
the company’s debt is a viable transaction, they will have the opportunity to
propose a loan structure for approval.
ECS
Industry: Manufacturing
ECS is a
company that designs, manufactures, services and distributes electrical power
condition systems for a variety of commercial and industrial applications.
There are
three versions of ECS Serious Game:
1. ECS is a
prospective customer looking to refinance its line of credit, currently with
another bank.
2. ECS is
an existing customer looking to borrow more money to restructure its balance
sheet after a large inventory purchase for “pennies on the dollar” from another
company. An additional element of guarantees is addressed in this
version.
3. ECS is a
current customer looking to renew their line of credit. During the site and
factory visit, the lender discovers that there is a covenant breach that must be
addressed.
About Omega Performance
Omega Performance equips bankers
with the skills to source sound lending opportunities and structure
high-quality, profitable loans to help grow a more profitable, higher-quality
loan portfolio. Omega Performance combines more than three decades of
experience with industry-leading technology to provide the results banks need.