CM September 2020
The CICM magazine for consumer and commercial credit professionals
The CICM magazine for consumer and commercial credit professionals
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demonstrates your commitment to<br />
professionalism and best practice<br />
TAKE PRIDE IN<br />
WEARING YOUR BADGE<br />
If you haven’t received your badge<br />
contact: cicmmembership@cicm.com<br />
MANAGING THE NEW<br />
CREDIT FUTURE<br />
Prepare and act now, for the<br />
Credit world of tomorrow.<br />
As the world continues to react to constant change, our<br />
credit profession needs to prepare for the new credit future.<br />
Debt management<br />
• Adjust collections and recovery strategies to fit the changing financial environment<br />
• Use KYC ‘know your customer’ to understand the customers in true financial difficulty<br />
• Focus skilled staff on long term management of aging debt with a propensity for resolution<br />
• Remove ‘uneconomical to collect’ debt from ledger via third party action, sale or write off<br />
Employees<br />
• Upskill staff for a new credit future through training and qualification programmes<br />
• Review and bolster support mechanisms that cater for the wellbeing of employees<br />
• Consult and trial agile working arrangements with touch points to check feasibility<br />
Cash resilience<br />
• Firm up honest and realistic cash forecasting projections and review them frequently<br />
• Tighten processes for quick & efficient cash collection, allocation and recovery referral<br />
• Calculate provision for bad and doubtful debt & review validity and value of securities<br />
• Agree new risk assessment protocols for ledger-wide vetting of new and existing customers<br />
• Review and strengthen supply chain, renegotiating contract terms in the new climate.<br />
Future proof strategies<br />
• Fine-tune the exit strategy, showing a roadmap of short, mid and long-term objectives<br />
• Align Credit Policy, processes, KPIs and contingencies to the organisation’s new risk strategy<br />
• Check processes are in place to allow for new and future flexible ways of operating<br />
• Secure debt and ledger management software to automate manual tasks<br />
Communication<br />
• Maintain Senior Management visibility with short, frequent reports linked to overall objectives<br />
• Reaffirm supply chain relationships with bespoke contact that builds plans for future trading<br />
• Hold staff e-meetings briefly and often to focus WFH and office-based staff in a common goal<br />
• Create cross functional work plans with re-emerging departments, to leverage help<br />
01780 722900 | info@cicm.com<br />
Access help from CI<strong>CM</strong><br />
Follow the CI<strong>CM</strong> Managing the New Credit<br />
Future Forum on LinkedIn.<br />
Access our Member Advice Service<br />
for support, answers and advice.<br />
Visit our Managing the New Credit Future<br />
webpage for more resources<br />
We continue to develop resources, advice and tools to help you prepare for<br />
tomorrow’s Credit, today. Stay in touch with us and be part of our community.<br />
CI<strong>CM</strong> is your professional body: use it. We are stronger in numbers.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 50
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