1. Credit Management Software -What opportunities and challenges does it present to the Credit Manager and how to evaluate what to do? -A key issue is the Credit Team’s authority and credibility: 21st October 2013 ICTF Basle 1

2. The CFO phone call “Our Key Account, “Acme Global” has just issued a profits warning - sales are down 10%. What is the impact upon us?” Four possible answers: 1.I’ll get back to you 2.I’m sending you a pdf now – it shows you our global position at close of play last night All outstanding balances, payment history, risk profile and history, credit limit history, decisioning audit trail, etc 3.I’m sending you the pdf and, as we speak, I am running the new numbers through my risk analysis tool – it shows me that the impact upon Acme’s financial health is xxx 4.You have already sent the pdf, the analysis and your recommended action - and this is what the CFO is phoning to consult you on 21st October 2013 ICTF Basle 2

3. Agenda Setting the scene Workshop –Your experience –Buzz groups Output & summary 21st October 2013 ICTF Basle 3

4. Setting the scene In ICTF we are all committed to Best Practice –That’s why we are here - to share ideas and experience –Most of us have achieved a great deal Our world is changing and the challenges faced by Credit Managers are increasing: –Some challenges are external – the environment we operate in –But there is a growing internal challenge: Where’s the beef? –What can credit management deliver to the bottom line? –Reduced costs - increased sales - enhanced competitive edge This pressure sometimes comes from Corporate HQ –usually focussing upon cost 21st October 2013 ICTF Basle 4

5. Setting the scene We have seen a trend towards Outsourcing or Shared Service Centres (SSCs) This has been successful for some companies, but for others it has been seen not to work and many have “re-in-sourced” or restructured their SSCs. This is often because the original process was seen purely as a cost-saving exercise and “the wrong thing was done for the wrong reasons” An underlying cause of this poor decisioning is often poor availability and quality of management information (MI) 21st October 2013 ICTF Basle 5

6. Some thoughts A key question for Credit Managers is whether they lead/influence the process, or merely react to it. Leadership and influence is more strongly achieved by delivery and through knowledge. –visible delivery to the bottom line through reducing costs or positively impacting the sales performance –having excellent “real time” MI at your disposal – putting yourself in a stronger and more authoritative position because you can view and demonstrate how efficient and effective strategies and processes are If you run large or multiple ledgers the biggest impact upon business performance and MI will be achieved through deploying credit management software 21st October 2013 ICTF Basle 6

7. Workshop Even when enthused by the potential, the software evaluation process is often new territory for the Credit Manager –Where do I start? –Risk software, collections software or both? –How do I evaluate the suppliers? –How do I move this forward with CFO and colleagues? People in this room have good experience and knowledge Key ground rule: –We’re here to discuss the Credit Manager’s issues and challenges – not the products 21st October 2013 ICTF Basle 7

8. Workshop Your experience Buzz groups – 3 topics 1.What are the challenges and opportunities facing the Credit Manager? What tips or advice would you offer? 2.How does the Credit Manager make the case to senior management? What tips or advice would you offer? 3.How does the Credit Manager make it happen? The “Do’s” and the “Do not do’s” 21st October 2013 ICTF Basle 8

9. Summary The successful Credit Managers will be those who step up to the challenge Credit Managers need and deserve the best tools to do the job It’s not easy and to get it right you need guidance: –Where do I start? –Risk software, collections software or both? –How do I evaluate the suppliers? –How do I move this forward with CFO and colleagues? 21st October 2013 ICTF Basle 9