Faculty of Business and Management

Assessment Brief 2022/23

A: Assessment Details

Module Title Credit, Lending and Risk Management

Module Code BU7056
Module Leader Alexios Makropoulos
Component Number 1
Assessment Type, Word Count & Weighting Assignment, 4000 words 100%
Submission Deadline
Submission Instructions Via Turnitin
Feedback Return Date 20 working days post submission

B: Learning Outcomes

LO1: Explore the theoretical underpinning of commercial lending and risk management within the
context of the funding needs of the customer.

LO2: Appraise the strategy, performance, and creditworthiness of a business, taking current and
expected economic, market and sector factors into consideration.

LO3: Identify and examine relevant risks associated with commercial lending environment to facilitate
complex decision making.

LO4: Critically appraise the legal framework required to mitigate the potential risks associated with
commercial lending in both domestic and international markets.

C: Assessment Task

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Faculty of Business and Management
Assessment Brief 2022/23

Select a non-financial sector company which is listed in the UK. Based on your selection, address the
following scenario.

Assume you are a credit and risk consultant working for a lender. You have been asked to assess the
company’s creditworthiness and consider whether you would recommend lending that company an
amount equivalent to 5% of its average turnover over the last 3 years. The company is expected to use
these money to expand its operations within the UK. The repayment period is for negotiation and can be
between 1-3 years.

Write a report which specifically considers the following:

• Appraise the company’s creditworthiness considering financial, management, strategy, and
business environment information.
• Critically evaluate the specific risks in lending that company, under the current external
environment conditions and the ones you anticipate over the repayment period. Make sure you
clarify what the latter are.
• Critically evaluate what covenants you will consider before deciding in favour of lending the
company.
• Summarise your lending decision, including the risks, covenants, and the acceptable repayment
period.

D: Specific Criteria/Guidance

The structure of your report may include:

a) An introduction which clearly states the objectives of the report and briefly introduces the company.
b) Critical Evaluation will usually need evidence from the academic literature.
c) Performance and analysis using relevant ratios in the context of credit and risk
d) A conclusion which attempts to critically reflect on the entire discussion.

E: Key Resources
1. Data: Use relevant databases or annual reports to extract financial information for the companies (s)
in question. Your data should be comprehensive enough to investigate the potential differences in the
average profitability before and after the merger/acquisition using relevant statistics.
Some of the recommended sources/databases are:
FAME Financial Analysis Made Easy
Reuters https://www.reuters.com/finance/global-market-data
Yahoo Finance https://uk.finance.yahoo.com/
Financial Times https://www.ft.com

2. Recommended Reading List

Choudhry, M. (2012). The principles of banking. John Wiley & Sons

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Faculty of Business and Management
Assessment Brief 2022/23

CIMA Text, (2021). Risk Management. Kaplan publishing.

Crouhy, M., Galai, D. & Mark, R. (2014). The Essentials of Risk Management: The Definitive Guide for the
Non-Risk Professional. (2nd ed.). McGraw Hill.

Dionne, G. (2019). Corporate Risk management: theories and applications. Wiley & Sons.

Hillier, D., Clacher, I., Ross, S., Westerfield, R. & Jordan, B. (2017). Fundamentals of corporate
finance, (3rd ed.), McGraw Hill.

Hull, J. (2018). Risk management and financial institutions. Wiley & Sons

Kaplan, J.M, Bailey, T., O'Halloran, D., Marcus, A., & RezeK, C. (2015). Beyond cybersecurity: protecting
your digital business. Wiley & Sons.

Lam, J. (2017). Implementing enterprise risk management: from methods to application. Wiley& Sons

Masood, O. & Javaria, K. (2018). Risk Management implementation and solutions for Islamic banking and
finance. Cambridge Scholars Publishing.

3. Online Journal databases

1) Emerald Insight Database. (2022). Emerald Insight [UoC Library Search].URL to Emerald Insight
Database

2) FT Database. (2022). Financial Times Newspaper. [UoC Library Search]. URL to Financial Times
Database

3) IBIS World Database. (2022). IBIS World. [UoC Library Search]. URL to IBIS World Database

F: Submission Guidance
• Students should submit work before 12 noon on the deadline date via the appropriate ‘Turnitin submission’
link on the Moodle module page. Please check your email confirmation to ensure you have submitted to the
correct place.
• Assessments should be submitted in Microsoft Word (.doc and .docx), Microsoft PowerPoint (.ppt, .pptx. .pps
and .ppsx), Excel (.xls and .xlsx) or PDF format (generated from the word-processing or presentation software
you are using, not a scanned document. Do not upload Open Office documents (.odt, .odp).

• Do not upload documents directly from Google Drive and One Drive.

• The file must be no larger than 40MB.

Please refer to Help with Assignment Submission section on Moodle for further guidance on online submissions.

G: Document Format
• The font size must be a minimum of point 12 Calibri (or equivalent).
• Line spacing in the body of the assessment must be 1.5 lines.

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• Include the following details written on the first page:

Title of your work
Module title and code
Your student assessment number (J Number). Do not write your name or your student number.
Word count (Please note penalties for excess word count)
Module Leader and Seminar Tutor (if relevant)
• Number the pages consecutively.

H: Academic Integrity and Penalties

It is your responsibility to ensure that you are familiar with all of the information contained in this brief as failure to
do this may impact on your achievement. Please refer to the various Assessment Guidance below for detailed
information on:
• Academic Integrity
• APA Reference Guide
• Excess Word Count Penalties
• University Generic Marking Criteria
• Late Work Penalties: Unless you have an extension, any work submitted past the assessment deadline will
be subject to a penalty as per university regulations (5 marks per day deduction).
• Mitigating Circumstances: Please refer to the latest University guidance if for any legitimate reason you are
unable to meet the assessment deadline.

I: Marking Criteria
The rubric required to address the content of this marking criteria is appended to this coursework.

Table of Content Marks

1 Introduction 5
Clearly capture the objective of the
report/investigation. The key highlights should also
be given adequate attention
2 Company’s creditworthiness 20

3 Risk Assessment 20
4 Covenants 20

5 Decision Summary 20

6 References & Presentation 10

Quality of references used; strict adherence to
APA referencing guide; number of references
used (adequate)
7 Conclusion 5
Total 100
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Faculty of Business and Management
Assessment Brief 2022/23

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 Generic Marking Criteria for level7 APPENDIX 5E

Distinction Distinction Distinction Merit Pass Fail Fail Fail Fail Fail
90–100% 80-89% 70-79% 60-69% 50-59% 40-49% Evidence 30-39% 20-29% 10-19% 0-9%
Evidence Evidence of… Evidence of… Evidence Evidence of… Evidence of… Evidence Evidence Evidence of…
of… of… of… of… of…
Knowledge Insightful and Advanced A high degree of Sustained Engagement Unsatisfactory Inadequate Lack of relevant Severely lacking in Negligible
sophisticated engagement with engagement engagement with with relevant engagement coverage of research and relevant understanding of
Knowledge and engagement with research and or with research research and/or knowledge with relevant relevant issues, little understanding research and key
understanding of research practice and/or practice practice pertaining to knowledge inconsistent shown; underpinning issues, which is
the academic and/or practice pertaining to the pertaining to pertaining to discipline and pertaining to understanding knowledge; likely to show
discipline, field of pertaining to field(s) and field(s) and disciplines of key issues; discipline and key shown; Very weak no critical analysis
study, or area of field(s) and disciplines of disciplines of study; issues; understanding of Slight understanding or
professional disciplines of study; study; Satisfactory Inadequate key issues, work of key engagement with
practice. study; An assured understanding Insufficient understanding of lacks critical issues, little attempt the learning
Accomplished Excellent understanding of and understanding underpinning oversight; at critical brief;
SCOPE: critical Sophisticated demonstration of demonstration current problems, conceptual and issues, weak and analysis;
engagement with demonstration knowledge, of supported by awareness conceptual underdeveloped Substandard No engagement
the primary and and application of contributing knowledge, with critical analysis enabling awareness of analysis; engagement with Slight engagement with research
secondary knowledge, towards the possibility with the critical analysis; knowledge(s) research material, with tasks.
sources used to offering innovative and/or for new insights; potential for new pertaining to the Response does misunderstanding research material,
answer the innovative and/or original insights; insights; Response is field; not address evident. inaccurate
question. original insights, A high degree of appropriate and learning knowledge and
possibly Extremely high synthesis A sustained addresses the Response does outcomes, misunderstanding
unparalleled in degree of relating to application and range of not address inaccurate throughout.
their synthesis of research depth of research learning the full range of and missing
application; research material. material. material and outcomes; learning knowledge.
accuracy in detail. where the outcomes,
A sophisticated knowledge is inaccurate and/or
degree of accurate. Work missing
synthesis, quite may lack knowledge at
likely of sustained times.
complex and depth.
disparate
material.
 Distinction Distinction Distinction Merit Pass Fail Fail Fail Fail Fail
90–100% 80-89% 70-79% 60-69% 50-59% 40-49% Evidence 30-39% 20-29% 10-19% 0-9%
Evidence Evidence of… Evidence of… Evidence Evidence of… Evidence of… Evidence Evidence Evidence of…
of… of… of… of… of…
Extensive range Substantial An assured range A satisfactory
Sources Extensive range and use of range and of reading, range of core Insufficient range Reading material Very weak Severely lacking Negligible
Reading and use and appropriate sophisticated with sustained and basic texts, of source is engagement with source attempt to
of appropriate sophisticated use sources; use of sources; reference to which reading of core inadequate and source reading of reading; identify
sources. of key and core texts. references and basic may not core and source material;
appropriate Extremely well Well-referenced The work current texts; include core and basic texts; Sources either not
sources; referenced research both may include research in basic texts; present and/or not No indication of
SCOPE: accurate research both in in breadth and current research the discipline; Sources not Inconsistent and/or referenced. source reading.
and consistent Unparalleled breadth and depth, which at the leading edge acknowledged in Sources limited referencing
acknowledgment standard of depth, which demonstrates of the Sources line with inaccurately of sources.
and referencing of research both in demonstrates clear intellectual discipline; acknowledged academic referenced.
sources. breadth and high intellectual rigor. appropriately conventions of
depth, which engagement Very good according to referencing.
demonstrates a and rigor. referencing in academic
very high breadth and/or conventions of
intellectual depth, which referencing.
engagement and shows a very good The work may
rigor. level of contain minor
intellectual rigor; errors and be
limited in
Sources breadth, depth
acknowledged and
appropriately intellectual
according to rigor.
academic
conventions of
referencing.
Methodology Insightful and Advanced Excellent A comprehensive A satisfactory Unsatisfactory An Very weak Research works Negligible
sophisticated interpretation, interpretation, understanding application of application of underdeveloped understanding of show very understanding of
SCOPE: critical interpretation, application and application and shown and a research research understanding of established little planning and established
engagement with application and evaluation of evaluation of sustained techniques and techniques established methodologies and understanding; research methods
methodologies evaluation of the the possibilities the possibilities application of enquiry that are pertaining methodologies those used by and those used by
underpinning possibilities and limitations and limitations established used to create to the discipline; and those used student; Erroneous use of the student;
original research and limitations of of the of the methodologies and and interpret by the student; methods to
or current the methodologies methodologies methods applicable knowledge in Unsatisfactory Substandard explain the work. No research
developments in methodologies used by used by to the student’s the research Research work is research, methods evident.
the discipline. used by the the student and the student and own research; discipline; undertaken, weak and methods mainly
student and key key key resulting in executed erroneous.
scholars/ scholars/ scholars/ Research work Research work underdeveloped inaccurately.
practitioners practitioners practitioners planned in planned and poorly
pertaining to the pertaining to the pertaining to scale and scope so systematically executed work.
field(s) of field(s) of the field(s) of that robust in scale and
study; study; study; and appropriate scope so that
evidence can appropriate
Methods used Methods used Methods used be gathered and evidence can be
offer new contribute may offer new articulated. gathered.
 Distinction Distinction Distinction Merit Pass Fail Fail Fail Fail Fail
90–100% 80-89% 70-79% 60-69% 50-59% 40-49% Evidence 30-39% 20-29% 10-19% 0-9%
Evidence Evidence of… Evidence of… Evidence Evidence of… Evidence of… Evidence Evidence Evidence of…
of… of… of… of… of…
insights and towards new insights or
contributions to insights to contributions to
knowledge. knowledge. knowledge.
Analysis A sophisticated Advanced An excellent A convincing and An ability to A lack of ability to A lack of ability to Very weak analysis, Slight indication of Negligible
command of command of command of sustained deal with deal with deal with possibly ability to coverage of
Critical analysis imaginative, imaginative, imaginative, command of complex complex issues; complex issues; limited to a single deal with key issues; learning
and insightful, original insightful, original original or accepted critical issues both perspective; outcomes;
interpretation. or creative or creative creative positions; systematically Judgements not Judgements are Slight analytical
interpretations; interpretations; interpretations; and fully not Substandard engagement No attempt to
SCOPE: A developed creatively; substantiated and substantiated or argument, work and reflection, work interpret
appropriate An unparalleled Accomplished A high degree of conceptual understood; understood lacks scholarly lacks research material.
analytical level of level of analysis analysis and understanding that A satisfactory and the critical analysis and criticality
discussion and analysis and and evaluation; evaluation; enables the evaluation of The ability to position is not interpretation; throughout;
interpretation of evaluation; student to find new current construct an made clear;
source material. A highly A sustained meanings in research and argument is Episodes of self- Lacks evidence,
A sophisticated developed cogent argument with established critical underdeveloped Weak contradiction work shows
cogent argument with the hypotheses; scholarship in and not interpretation of and/or confusion. self-contradiction
argument offering the potential to possibility for the discipline; supported fully research and and
new and bring new and new insights to A developed and with work is not confusion.
original original knowledge. sustained Ability to devise evidence. supported with
contributions to contributions to argument with the a coherent evidence.
knowledge. knowledge. possibility critical/
for new insights to analytical
knowledge. argument is
supported with
evidence.

Communication A sophisticated Persuasive A high degree of Secure and Good Unsatisfactory Significant errors Very weak Slight observation of Negligible
response, the articulation, skill, the sustained expression, demonstration evident in the observation of academic observation of
Communication academic form where academic form expression, observing and application of academic form; academic conventions; academic
skills: creative, matches that the academic shows observing appropriate key conventions; conventions;
written and expected in form largely exceptional appropriate academic form; communication Weaknesses in Weak expression,
presented. published and matches that standards of academic form; skills; spelling and Severe deficiencies mostly Incoherent and
professional expected in presentation or Predominantly grammar, lacks in spelling incoherent and fails confused
SCOPE: work; published work; delivery; Fluent and accurate in Recurring errors coherence and and grammar and to secure expression, poor
communication of persuasive spelling and in spelling and structure, expression meaning, poor paraphrasing;
intent, adherence Mastery and Accomplished A high expression of ideas, grammar, ideas grammar, ideas possibly poor undermines paraphrasing;
to academic command of command of command of work communicated limited and paraphrasing; meaning, possibly No discernible
subject discipline specialist skills specialist skills specialist shows flair; appropriately underdeveloped, poor paraphrasing; Slight engagement demonstration
protocols. pertaining to the pertaining to the skills pertaining and possibly poor Work lacks with the of key skills
academic form; academic form, to the academic Assured satisfactorily; paraphrasing; technical Substandard work. (pertaining to the
discipline and form, discipline interpretation of judgement. relationship discipline);
Idiomatic and context(s); and context(s). the style and Satisfactory Skills between content,
highly coherent, genre, content, application of demonstrated are form and No engagement
scholarly form and technique specialist skills insufficient for technique. with the work.
expression. for specialist and with effective the task and work
 Distinction Distinction Distinction Merit Pass Fail Fail Fail Fail Fail
90–100% 80-89% 70-79% 60-69% 50-59% 40-49% Evidence 30-39% 20-29% 10-19% 0-9%
Evidence Evidence of… Evidence of… Evidence Evidence of… Evidence of… Evidence Evidence Evidence of…
of… of… of… of… of…
non-specialist technical may lack technical
audiences as control. judgement.
appropriate.

Reflection Insightful Advanced level of A high degree of An assured level of A satisfactory Unsatisfactory Weak self- Very weak self- Slight evidence of Negligible
response to critical critical self-evaluation, self self-evaluation evaluation of evaluation self-evaluation of evidence of self-
Critical reflection critical self- self-evaluation, self-evaluation, reflecting evaluation, of professional professional of professional professional evaluation of
and/or evaluation, reflecting reflecting sustained reflecting and/or personal and/or and/or and/or personal professional
personal and reflecting professional professional professional appropriate engagement and personal personal engagement and and/or personal
professional exemplary and/or and/ or and/or personal standards of conduct; engagement and engagement and conduct; engagement and
application. professional personal personal standards professional conduct; conduct; conduct;
and/or standards of standards of of engagement and and/or Unsatisfactory Inappropriate
SCOPE: personal engagement and engagement conduct; personal engagement with Weak Substandard execution of No engagement
Intellectual standards of conduct and conduct; engagement established ways engagement with engagement key tasks and work with
engagement with engagement and throughout; Assured application and conduct; of established ways with established may established ways
the processes by conduct Excellent of new working of ways of working; be a cause for of working;
which the work is throughout; Accomplished application of or established ways Satisfactory pertaining to the working concern.
realised. application new insights (or of engagement discipline; pertaining to the Inappropriate In professional or
Sophisticated of new insights (or a highly working; with discipline; execution of work. equivalent
application advanced skilled established Insufficient contexts the
of new insights application of application of Work evidences ways of planning, work Inadequate work will be cause
(or highly established ways established thorough working not executed in planning. for
advanced of working ways of independent pertaining to full. concern.
application of pertaining to the working planning and the discipline;
established ways discipline). pertaining to execution of key
of working the discipline). tasks. Independent
pertaining to the planning and
discipline). execution.