Steps You Can Take to Manage an Accounts Receivable Portfolio in Times of Risk and Uncertainty
Robert Shultz Overview:
Ways to manage an Accounts Receivable portfolio, set strategies to both mitigate risk and find opportunities to generate profitable revenue from underutilized creditworthy customers.
Why you should Attend:
An Accounts Receivable portfolio is typically one of the largest and most liquid of your company’s assets. Proactive management of an Accounts Receivable portfolio is a team sport requiring the participation of senior management, treasury, credit, and sales. The stage must be set with all the elements in place, effective automation, an accurate customer master, linking related customers, the ability to segment portfolio risk categories, timely Monitoring of credit line adherence, and a routine of stress testing concentrated risks.
Successful portfolio management strategies are in line with your company’s sales, cash flow, and financial objectives. A well-understood and managed portfolio drives the cash flow needed to sustain and grow your business and impacts your company’s borrowing capacity and lending formulas.
By creating portfolio transparency, you will bring visibility to high-risk concentrations enabling proactive risk mitigation strategies and raising opportunities to increase sales to low-risk segments.
Areas Covered in the Session:
- Introduction
- Portfolio Management as a Team Effort
- The Importance of Managing Portfolio Risk
- Setting the Stage for an Effective Credit Policy and Credit Culture
- Setting Priorities
- Segmenting Risks
- The Importance of :
- A Diversified Portfolio
- Timely and Ongoing Performance Reporting and Monitoring of Credit Line Adherence
- Stress testing the portfolio
- Tracking trends
- Portfolio risk mitigation strategies based on your company’s risk tolerance, revenue, and cash requirements.
- Maintaining an adequate allowance for bad debts and CECL compliance
Who Will Benefit:
- Staff and Management in Credit and Collections
- Treasury and Finance
- SMB Owners
Speaker Profile
Robert S. Shultz has had a forty-year career as a credit and financial executive and consultant working with mid-size to large global corporations in numerous industries and countries.
In his last corporate role, he was the Corporate Vice President of Credit and Customer Finance for Sony Pictures Entertainment, (SPE) He had responsibility for all order-to-cash activities, including billing, credit, collections, and accounts receivable management. This encompassed all business units globally.
In 2001 he became a Founding Partner of Quote to Cash Solutions (Q2C) LLC, a consulting firm that focuses on quote-to-cash cycle improvements, skill training, education, and expert witness support in credit and bankruptcy cases.
Robert has proven results in helping clients improve their quote to cash processes, and policies, leading to increased liquidity, reductions in accounts receivable dilution, and effective deployment of automation, outsourcing, and the internal support organization.
Robert is a frequent speaker, writer, and trainer on in all aspects of the quote-to-cash process and related management roles.
As a member of the Editorial Board of the Credit Today Newsletter he has been a regular content provider.
He serves on the UCLA Extension Advisory Board which established the Credit Analysis and Management Certificate program. He is an Instructor for two of the classes, Credit Analysis, and Portfolio Risk Analysis.
Robert is currently the Chairman of the Financial Executive Networking Group (FENG) Credit Management Special Interest Group.
He is a past Chairman of the Board of Directors of the Credit Management Association (CMA) and later served on the Board’s Advisory Committee. In addition to that role, he was an active volunteer for the National Association of Credit Management (NACM) and Credit Research Foundation (CRF) activities and was a member of the Dun and Bradstreet National Advisory Group.