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Posts tagged as “Rating”

Setting Up A Performance-Related Pay Scheme

Designing an effective Performance-Related Pay (PRP) scheme is a powerful way to align employee compensation with your company’s strategic goals, drive motivation, and enhance overall productivity. A well-constructed PRP system ensures that rewards are directly tied to tangible achievements, promoting a high-performance culture.

2 Different Methods of Bond Valuation

This is where bond valuation comes in. It's the process of determining a bond's fair market value based on the present value of its future cash flows. Here's a look at the most common ways to value a bond.

Securitization

Securitization is a financial process that transforms illiquid assets (like loans or receivables) into tradable securities that can be sold to investors.

Adverse Selection

It happens when one party to a deal has more or better information than the other and uses it to their advantage, leading to a "skewed" or "adverse" outcome for the less-informed party.

Irresponsible Lending

Irresponsible lending, also known as predatory lending, is the practice of extending credit to borrowers without properly assessing their ability to repay.

The MABA Matrix

MABA stands for Market Attractiveness-Business Assessment. The matrix typically uses a 3x3 grid (creating nine cells) to plot business units based on two key dimensions.

Failure Mode and Effects Analysis (FMEA)

Failure Mode and Effects Analysis (FMEA) is a systematic, proactive method used to identify potential failure modes in a product, process, or system, assess their potential effects, and prioritize them for action to eliminate or reduce the risk of occurrence.