Selling Risk-Based Solutions

Business Issue - Building long-term credit relationships with middle-market and large corporate clientele is a strategic priority for financial institutions striving to grow sound loan portfolios and increase profitability. The challenge is enabling corporate sales and relationship managers to increase their selling effectiveness by gaining a better understanding of credit and risk practices. While these managers are typically not the final decision makers, they must have a firm appraisal of credit risk in order to sell risk-based products effectively. The need for a powerful combination of risk analysis knowledge and need-driven sales techniques are becoming more evident in today's market place.

Omega Performance’s Solution - Selling Risk-Based Solutions teaches both critical risk analysis techniques and consultative selling skills using risk-based approaches. The risk content is derived from Omega Performance’s Commercial Loans to Business program—recognized as the industry standard for commercial loan training—and covers core skills in commercial/corporate risk assessment and decision making from preliminary assessment through analysis of borrowing causes, industry risk analysis, and business and management risk analysis.

The sales skills content focuses on applying the risk analysis approaches to sales situations and includes effective pre-call planning; questioning skills and strategies; identifying credit needs; and presenting appropriate, needs-targeted solutions. These core selling skills are taught and reinforced using risk strategies as the foundation.

What Is Included

Selling Risk-Based Solutions includes self-study, pre-work, and a workshop with two videotaped skill practices. Self-study includes the following modules, each of which covers an important facet of the commercial lending decision process:

Opportunity Assessment introduces commercial lending and the asset conversion cycle, and provides a framework for comprehensive risk analysis.
Borrowing Causes teaches participants to probe into the real reasons behind a borrower’s loan request. Participants learn that if they understand the true cause, they will be better able to understand the risks in lending to a company, structure a loan appropriately, and anticipate the borrower’s needs.
Industry Risk Analysis addresses the changes in the environment in which the borrower operates by examining the economic, market, demographic, and other forces that are generally outside the borrower’s or the lender’s control.
Business Risk Analysis helps participants analyze how well a borrower’s management team is dealing with the risks inherent in the industry.

In addition to the self-study, pre-work consists of reading a comprehensive case study that is used in the risk section of the workshop and preparing an actual client scenario for use in the videotaped skill practice activities. The standard case study is a large public corporation. Alternative case studies for credit and/or sales activities may be used to accommodate different sizes of clients/markets and the institution’s need for tailoring with its own case studies.

The workshop portion of Selling Risk-Based Solutions covers the following topics:

Day 1—Credit: Review and apply the four modules from the self-study, introduce and discuss financial statement analysis.
Day 2—Sales: Review call planning, questioning strategies, and application of credit concepts to sales; practice a sales call; participate in videotaped skill practice.
Day 3—Sales: Review and apply skills in creating solutions, presenting benefits, and handling objections; participate in videotaped skill practice.

During the two videotaped skill practices, participants apply the high-impact skills and knowledge gained in the self-study and workshop to conducting an actual deal they are working on. The practices feature video modeling and feedback, a learning technology that Omega Performance has found to be unparalleled in changing participants’ behavior in the shortest time. Videotape review is accompanied by balanced feedback from the instructor and peers.

At the workshop conclusion, each participant is provided with a comprehensive Reference Guide complete with job aids applicable to risk analysis and selling skills for use back on the job.

Delivery Options

Implementation of Selling Risk-Based Solutions is preceded by a consultation with Omega Performance consultants to determine specific content emphasis, applicability of standard case studies (or substitution alternatives), and implementation strategies. Consulting time can range from one hour to three or more days. Participants may complete the self-study portion of Selling Risk-Based Solutions either in paper or online form. Omega Performance can conduct the three-day workshop and facilitate the videotaped skill practices and/or train in-house resources.

Results You Can Expect

Selling Risk-Based Solutions helps you and your commercial sales people:

Better understand credit and risk practices
Apply risk analysis approaches to sales situations
Build relationships with high-level customers based on a thorough understanding of their credit needs
Recommend appropriate, needs-targeted credit solutions
Increase lending efficiency
Improve portfolio risk

Who Should Be Trained

Selling Risk-Based Solutions is recommended for sales and relationship managers who primarily work with middle market to large corporate clientele in the areas of prospecting, origination, preliminary assessment, and analysis to the extent required to submit a package to underwriting. While it is designed for individuals who are not in underwriter roles, risk analysis approaches and tools are discussed and applied throughout the program, and risk underwriters may benefit from greater understanding of selling skills.

Prerequisites

There are no prerequisites for Selling Risk-Based Solutions. A working knowledge of business financial and accounting concepts is highly recommended.